Tuesday, April 17, 2012

The Guardian Brent slips to $118 on renewed fears of euro zone crisis

SINGAPORE, April 17 (Reuters) - Brent crude slipped to $118 on Tuesday, continuing its steep decline from the previous session, as Spain's debt woes reignited concerns about the European debt crisis and the economic outlook for the euro zone.

Investors remained cautious as Spanish government bond yields broke through the 6 percent mark on Monday for the first time since December, stoking fears that the euro zone's fourth largest economy may need an international bailout.

Brent crude for June delivery slipped 35 cents to $118.33 a barrel by 0240 GMT, after sliding 2.59 percent in the previous session, the biggest one-day percentage loss since December.

U.S. crude for May delivery which expires on Friday, traded 5 cents higher at $103.00 a barrel, after settling at $102.93.

"Euro zone concerns are affecting all risk assets at the moment, with the bearish zone suggesting that Greece was just the side show and Spain's the real game," said Ben Le Brun, market analyst at OptionsXpress.

"Elsewhere the economic data is positive, but if something falls over in Spain and Italy, they're too big to fail and too big to bail and will likely create a domino effect." Read More