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Oil prices fell in Asian trade today as persistent worries over the Euro Zone’s debt crisis hit sentiment, analysts said.
New York’s main contract, light sweet crude for September delivery, declined 18 cents to $88.32 a barrel in morning trade and Brent North Sea crude for delivery in September fell 42 cents to $103.
Investors have been spooked by a deterioration in the long-running Euro Zone debt crisis as borrowing prices for Spain, the bloc’s fourth biggest economy, struck a new high on Tuesday, triggering concerns that it may need a rescue.
“Spanish bailout worries continue to plague markets...
Clearly these interest rates are unsustainable and action will need to be taken internally or externally to restore some confidence in buying Spanish debt,” said Mr Justin Harper, market strategist with IG Markets Singapore.
Investor confidence was also dealt a blow after ratings agency Moody’s threatened to cut Germany’s coveted top credit rating amid fears the Euro Zone’s difficulties could pull it apart.
The announcement pushed Spain’s borrowing costs above 7.5 per cent, well above the seven per cent mark that forced others into seeking international rescues.
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