Oil dips on euro zone worry

Oil price: Europe woes dragged

AP/Scanpix

By News wires

 23 April 2012 21:27 GMT

Oil edged lower on Monday on pressure from revived concerns about a euro zone economic slump and political uncertainty, while a North Sea production problem and worries about Iran and potential supply disruptions limited losses.

Euro zone business contraction deepened at a faster pace than expected in April, with the Purchasing Managers Index for the bloc's dominant service sector falling to a five-month low, against forecasts that it rose, Reuters reported.

Politics added to the uncertainty after the Socialist challenger edged out French President Nicolas Sarkozy, leaving the two to fight a 6 May election run-off, and the Dutch government was set to resign in a crisis over budget cuts.

The signs of euro-zone economic and political turmoil sparked a "risk-off" trade, pushing global equities, the euro and key industrial feedstock copper lower and sending investors…

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