Oil down in Asia on eurozone concerns

Agence France-Presse

Posted at Jul 12 2011 12:00 PM | Updated as of Jul 12 2011 08:01 PM

SINGAPORE - Oil was down in Asian trade on Tuesday as traders worried that the worsening eurozone debt crisis could spread to Italy and Spain, analysts said.

New York's main contract, light sweet crude for delivery in August, fell 49 cents to $94.66 a barrel.

Brent North Sea crude for August delivery shed 45 cents to $116.79.

"Oil continues to trade down this morning and the main factor is the concern over the European debt crisis spreading to Italy," said Victor Shum, an analyst at Purvin and Gertz international energy consultancy in Singapore.

Eurozone financial ministers met in Brussels on Monday to discuss a new rescue package for Greece, even as fears mounted that Italy or Spain were next.

Bond yields for those two eurozone countries hit record highs Monday as investors worried that the two could be the next to sink into Europe's spreading debt crisis.

Meanwhile, the markets were still reacting to the bearish June jobs data from the US, the world's largest economy and oil consumer, released Friday.

The US Labor Department reported that the economy added few new jobs and the unemployment rate unexpectedly rose to 9.2%, which dampened investors' sentiment.

"Oil in the near term is trading within a range of volatility, with Nymex trading around $95," Shum told AFP.