July crude oil futures dropped on Thursday to finish the month significantly lower as on-going concerns over global demand and worries over European debt pushed investors away from the commodity.

The July oil futures contract for West Texas intermediate lost 1.47%, or $1.29, to end the day at $86.53 a barrel on the New York Mercantile Exchange, its lowest level since October 20th last year.

The decline meant the most widely traded oil futures contract ended May 17% lower, its sharpest fall since December 2008.

Meanwhile, heating oil lost 1.48% to settle at $2.70 per gallon, and unleaded gas fell 1.85% to $2.72.

Natural gas was the lone riser on energy markets, up 0.17% to $2.42 per million British thermal units, following an increase in storage levels at the upper end of expectations.

Futures largely declined across the board in metals, with gold ending the day down 0.05% at $1,562.60 per troy ounce, silver down 0.81% at $27.76, and copper down 0.72% at $3.37.

Platinum bucked the trend to rise 1.16%, settling at $1,422 per troy ounce on the October contract.

NR