Investing.com - Crude oil futures added to losses during U.S. morning trade on Monday, falling below USD79-per-barrel as doubts over whether an upcoming European Union summit will yield any progress on tackling the region’s debt crisis dampened demand for riskier assets.
Persistent fears over a slowdown in global growth and its implications on oil demand further weighed.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD78.84 a barrel during U.S. morning trade, tumbling 1.15%.
It earlier fell by as much as 1.35% to trade at a session low of USD78.64 a barrel. Prices touched USD77.56 a barrel on Friday, the lowest since October 5.
Market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners earlier in the day. Spain’s economy minister said the amount should be enough to cover the needs of all banks and provide an additional security buffer.
The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Meanwhile, fears that the debt crisis in the euro area is creating a drag on global growth continued to weigh, following a string of data last Thursday which pointed to weak U.S. manufacturing activity, a shrinking Chinese manufacturing sector and slowing business activity across the single currency bloc.
Oil traders were also monitoring the path of Tropical Storm Debby as it hovered in the Gulf of Mexico.
The National Hurricane Center reported Debby was gaining strength on Sunday, hitting the northeastern Gulf coast with high winds and heavy rain.
The projected path of the 2012 hurricane season’s fourth named storm remained uncertain.
Oil drillers including Conoco Phillips and British Petroleum shut about 23% of output in the Gulf of Mexico as a precaution ahead of Tropical Storm Debby.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 20% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.65% to trade at 90.42 a barrel, with the spread between the Brent and crude contracts standing at USD11.58.
London-traded Brent prices fell to as low as USD88.49 a barrel on Friday, the lowest since December 20, 2010.
Brent futures are down nearly 29% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.
Persistent fears over a slowdown in global growth and its implications on oil demand further weighed.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD78.84 a barrel during U.S. morning trade, tumbling 1.15%.
It earlier fell by as much as 1.35% to trade at a session low of USD78.64 a barrel. Prices touched USD77.56 a barrel on Friday, the lowest since October 5.
Market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners earlier in the day. Spain’s economy minister said the amount should be enough to cover the needs of all banks and provide an additional security buffer.
The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Meanwhile, fears that the debt crisis in the euro area is creating a drag on global growth continued to weigh, following a string of data last Thursday which pointed to weak U.S. manufacturing activity, a shrinking Chinese manufacturing sector and slowing business activity across the single currency bloc.
Oil traders were also monitoring the path of Tropical Storm Debby as it hovered in the Gulf of Mexico.
The National Hurricane Center reported Debby was gaining strength on Sunday, hitting the northeastern Gulf coast with high winds and heavy rain.
The projected path of the 2012 hurricane season’s fourth named storm remained uncertain.
Oil drillers including Conoco Phillips and British Petroleum shut about 23% of output in the Gulf of Mexico as a precaution ahead of Tropical Storm Debby.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 20% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.65% to trade at 90.42 a barrel, with the spread between the Brent and crude contracts standing at USD11.58.
London-traded Brent prices fell to as low as USD88.49 a barrel on Friday, the lowest since December 20, 2010.
Brent futures are down nearly 29% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.