Oil prices slip as concerns over Spain mount

24-Jul-12

Oil prices fell towards US$103 a barrel on Monday as investors sold off riskier assets on fears that Spain will not be able to avoid a costly sovereign bailout. Brent crude dropped by over three dollars to US$103.6, while oil on the Nymex fell to US$88.78/barrel. Oil and the euro fell on fears that Spain, the eurozone's fourth-largest economy, may be forced to seek a lifeline from international lenders. The dollar strengthened 0.36% against a basket of currencies as investors and traders abandoned the euro. A stronger dollar puts pressure on commodities that are priced in dollars as it makes them more expensive.