Oil fell in Asian trade on Tuesday as investors were concerned that the worsening eurozone debt crisis could spread to Italy and Spain, analysts said.
New York's main contract, West Texas Intermediate, for delivery in August, fell 56 cents to $94.59 a barrel.
Brent North Sea crude for August shed 62 cents to $116.62 in the afternoon.
'Oil continues to trade down this morning and the main factor is concern over the European debt crisis spreading,' said Victor Shum, an analyst at Purvin and Gertz international energy consultancy in Singapore.
Eurozone finance ministers met in Brussels on Monday to discuss a new rescue package for Greece, as fears mounted that Italy or Spain were next.
Bond yields for the two troubled eurozone countries hit record highs Monday as investors worried they could be the next in line for a bailout, or could possibly default on their debt repayments.
Markets were also still weighed by the weak June jobs data from the US, the world's largest economy and oil consumer, released Friday.
Source : New Age
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