Investing.com - Crude oil futures fell on Thursday on fears the European debt crisis was heating up in Spain and Italy, while the leftwing Syriza political party gained ground in the latest political polls in Greece, reminding investors Greece's eurozone membership was not etched in stone.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD87.46 a barrel in Asian trading Thursday, down 0.41%, off from a session high of USD87.72 and up from an earlier session low of USD87.33.
Events in Europe sparked a major risk-off trading session that sent the dollar climbing and assets like oil tumbling.
Spain appears likely recapitalize the Bankia financial institution with EUR19 billion via debt financing, which has markets concerned, especially since the regional government of Catalonia has asked Madrid for help refinancing its debts.
Yields in Spanish debt auctions have soared in recent sessions and remain elevated, while borrowing costs in Italian auctions are up as well.
Meanwhile in Greece, new polls show the leftwing Syriza political party is gaining ground ahead of June 17 elections.
Syriza politicians oppose austerity measures attached to bailout funding, and a strong showing in upcoming elections could lead to a coalition government rejecting austerity, which could potentially open the door to a Greek exit from the eurozone.
The events in Europe stoked fears that Europe's debt crisis is escalating and my slow overall growth across the continent, even in healthy countries, and cut into oil demand.
Meanwhile in the U.S., the National Association of Realtors reported that pending home sales dropped 5.5% in April, well beyond expectations for a 0.1% decline.
On the ICE Futures Exchange, Brent oil futures for July delivery were up 0.04% and trading at USD103.07 a barrel, up USD15.61 from its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD87.46 a barrel in Asian trading Thursday, down 0.41%, off from a session high of USD87.72 and up from an earlier session low of USD87.33.
Events in Europe sparked a major risk-off trading session that sent the dollar climbing and assets like oil tumbling.
Spain appears likely recapitalize the Bankia financial institution with EUR19 billion via debt financing, which has markets concerned, especially since the regional government of Catalonia has asked Madrid for help refinancing its debts.
Yields in Spanish debt auctions have soared in recent sessions and remain elevated, while borrowing costs in Italian auctions are up as well.
Meanwhile in Greece, new polls show the leftwing Syriza political party is gaining ground ahead of June 17 elections.
Syriza politicians oppose austerity measures attached to bailout funding, and a strong showing in upcoming elections could lead to a coalition government rejecting austerity, which could potentially open the door to a Greek exit from the eurozone.
The events in Europe stoked fears that Europe's debt crisis is escalating and my slow overall growth across the continent, even in healthy countries, and cut into oil demand.
Meanwhile in the U.S., the National Association of Realtors reported that pending home sales dropped 5.5% in April, well beyond expectations for a 0.1% decline.
On the ICE Futures Exchange, Brent oil futures for July delivery were up 0.04% and trading at USD103.07 a barrel, up USD15.61 from its U.S. counterpart.