Commodities: Crude slips on Spain downgrade

Date: Wednesday 30 May 2012

Crude oil futures fell slightly on Tuesday, as US markets returned from a three-day holiday to news of Spain’s credit rating downgrade.

Egan-Jones Ratings cut Spain's credit rating for the third time in less than a month, sparking fresh fears about oil demand in the Eurozone.

Crude oil for July delivery slipped 10 cents to settle at $90.76 a barrel on the Comex division of the New York Mercantile Exchange. Oil prices have tumbled 7% since their high of $109.77 late February.

Oil prices had risen in earlier trading on Tuesday on fresh optimism about Greek polls showing Greek parties in favour of austerity are gaining ground. Fresh concern Tehran's nuclear programme also fuelled temporary gains as recent talks failed to progress as hoped.

Bullion settled 1.3% lower on Tuesday as the euro fell and the dollar gained following Spain's downgrade.

Gold for August delivery fell $20.20 to settle at $1,551 an ounce on the Comex division of the New York Mercantile Exchange.



CJ

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