Forexpros – Crude oil futures fell on Wednesday, shrugging off fears the Iran standoff may rekindle and reports China will stimulate its economy and focused on Spain, where deteriorating financial health sent the commodity dropping.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD90.56 a barrel in Asian trading Wednesday, down 0.23%, off from a session high of USD90.95 and up from an earlier session low of USD90.51.
Spain is set to recapitalize its Bankia financial institution by EUR18 billion and may end up helping regional governments refinance their debts.
Fears the Spanish economy is running under increasing financial strain has rattled nerves in markets worldwide, fueling fears the Spanish economy, already deep into recession, may lag on European growth, which would crimp oil demand.
Talk that China will stimulate its economy to spur more growth failed to bring out enough bulls into the market as did distant but slightly growing concerns that the Iranian nuclear standoff could heat up anew.
Delegates from the U.S., U.K., China, France, and Russia and Germany recently concluded talks with Iranian officials to diffuse a standoff involving Iran’s nuclear plans, which ended largely with no progress.
The West has accused Iran of enriching uranium to build nuclear weapons, a charge Tehran denies, arguing its nuclear program serves the country’s energy needs.
While both sides made little progress, they did agree to return to the negotiating table in June.
On the ICE Futures Exchange, Brent oil futures for July delivery were down 0.37% and trading at USD106.34 a barrel, up USD15.78 from its U.S. counterpart.
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