According to sources, it was revealed that oil closed to a lowest closing price in a week. This has created a concern that Europe’s debt problems may be harming the fuel demand. This has happened after there have been attacks by the Libyan Government on oil facilities in the country.
Futures dropped as much as 0.8 percent after Moody’s Investors Service cut Spain’s credit rating. They said that the cost of shoring up the Spanish banking industry will eclipse government estimates.
The earlier price was 0.7 percent after the fight in Libya forced to shut the nation’s largest oil refinery.
The Kuwait’s oil minister claimed that the OPEC is discussing the market situation after there has been turmoil in North Africa and Middle East.
“Oil hasn’t risen more because of the downgrading of Spain and the decline of the euro today against the dollar. Oil is still moving in relation to the dollar”, said Gerrit Zambo, a trader at Bayerische Landesbank in Munich.
The crude oil in US was being traded at $103.92, is down by 46 cents, in electronic trading on the New York Mercantile Exchange at 10:50 a.m. in London.
Euro has dropped to $1.3805 against dollars and has become the least since March 2. It has lost $1.5 percent after climbing four months high on March 7.