Investing.com - Crude oil futures came under heavy selling pressure during European morning hours on Monday, as appetite for growth-linked assets weakened after news of a bailout deal for Cyprus sparked fresh concerns over the sovereign debt crisis in the euro zone.
Oil prices struggled further due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD92.41 a barrel during European morning trade, down 1.1% on the day.
New York-traded oil prices fell by as much as 1.5% earlier in the session to hit a daily low of USD92.14 a barrel. Nymex oil prices rose to USD93.82 a barrel on Friday, the strongest level since February 25.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In exchange for the rescue money, international creditors would impose a one-time tax of 6.75% on all bank deposits under EUR100,000 and 9.9% over that amount.
The agreement marked the first time since the onset of the debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend, raising worries it could also spark an exodus of capital from fragile European economies.
The parliament in Cyprus was to vote on whether to approve the tax proposal later in the day. If the vote was defeated media outlets in Cyprus said banks could remain closed on Tuesday, following a public holiday on Monday, to avoid mass withdrawals.
The news prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to traditional safe haven assets like the U.S. dollar and Treasuries.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery lost 1.1% to trade at USD108.59 a barrel, with the spread between the Brent and crude contracts standing at USD16.18 a barrel.
Oil prices struggled further due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD92.41 a barrel during European morning trade, down 1.1% on the day.
New York-traded oil prices fell by as much as 1.5% earlier in the session to hit a daily low of USD92.14 a barrel. Nymex oil prices rose to USD93.82 a barrel on Friday, the strongest level since February 25.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In exchange for the rescue money, international creditors would impose a one-time tax of 6.75% on all bank deposits under EUR100,000 and 9.9% over that amount.
The agreement marked the first time since the onset of the debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend, raising worries it could also spark an exodus of capital from fragile European economies.
The parliament in Cyprus was to vote on whether to approve the tax proposal later in the day. If the vote was defeated media outlets in Cyprus said banks could remain closed on Tuesday, following a public holiday on Monday, to avoid mass withdrawals.
The news prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to traditional safe haven assets like the U.S. dollar and Treasuries.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery lost 1.1% to trade at USD108.59 a barrel, with the spread between the Brent and crude contracts standing at USD16.18 a barrel.