Crude prices declined on Tuesday, suffering the seventh loss in the last eight trading sessions, as investors were worried that European economy was dragged into a downside spiral.

The price of oil is near seven-month low after the Organization for Economic Cooperation and Development (OECD) warned on Tuesday that the 17 nations using the euro are at risk of falling into a "severe recession".

The OECD called on the European Central Bank to do more to stem the crisis by putting the focus on growth issues as austerity policies implemented across the region have weighed on growth.

The high level of government debt in many European countries does warrant a push to reduce spending, but that process should occur gradually and over the long term., according to OECD's report.

The concerns over demand apparently helped eased tensions over Iran's nuclear program, which push oil prices higher in the previous session.

Oil prices rebounded on Monday, snapping a six-day losing streak on speculation of more sanctions against Iran from Western countries ahead of another round of Iran nuclear talks on May 23.

The head of the United Nations' International Atomic Energy Agency pressed Iran over inspections during a visit to Tehran on Monday, which would have an impact on the six-power meeting later this week. But there was no sign of reaching a deal, which spurred speculations of more sanctions against Iran in the market.

Light, sweet crude for June delivery dropped 0.91 dollars, or 0. 98 percent to settle at 91.66 dollars a barrel on the New York Mercantile Exchange.

In London, Brent crude for July delivery also fell and last traded around 108 dollars a barrel.