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Oil mixed in Asia on eurozone worries

Nick Trevethan, senior commodities strategist for ANZ Research, added: “The big weight hanging over the market is what's going on in Europe.” - AP photo

SINGAPORE: Oil prices were mixed in Asia on Tuesday afternoon as eurozone worries shifted to Spain's surging borrowing costs from Greece, analysts said.

New York's main contract, light sweet crude for delivery in July, fell 18 cents to $83.09 per barrel in the afternoon while Brent North Sea crude for August gained four cents to $96.09.

Prices soared on Monday after pro-bailout parties won a crucial election in Greece at the weekend -- beating groups that threatened to tear up a bailout agreement, which economists had feared would have led to Athens' exit from the euro.

Fears that Spain would require a bailout were reignited after the yield o its benchmark 10-year bonds topped 7.0 per cent on Monday, the highest level since the birth of the euro in 1999.

“Spanish bond yields reached euro-era highs, reminding investors that the region's economy remains stressed,” Phillip Futures said in a report.

Nick Trevethan, senior commodities strategist for ANZ Research, added: “The big weight hanging over the market is what's going on in Europe.”

Traders were also eyeing a two-day G20 summit currently being held in Mexico for more leads to the market, he said.


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