Oil slips after Spain credit downgrade

Euro zone worries: Debt concerns linger

AP/Scanpix

By News wires

 29 May 2012 20:51 GMT

Oil prices fell on Tuesday in choppy trading, faltering after a downgrade of Spain's credit rating sent the euro to nearly a two-year low against the dollar.

Egan-Jones Ratings cut Spain's credit rating for the third time in less than a month, weakening the single currency and rekindling fears of a spreading debt crisis in the euro zone, Reuters reported.

"Crude oil prices dropped as soon as the Egan-Jones downgrade of Spanish debt was announced," John Kilduff, partner at Again Capital LLC in New York, told the news wire.

"The reaction highlights the nervous state of the markets over the slow creep toward the precipice of a market disruption event in the euro zone," he added.

Optimism about polls showing leads…

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