Crude lower in Asia on Italian bond jitters
Crude prices turned lower in Asia today as markets focused on Italy's record bond yields as a sign that the eurozone debt troubles were far from over, analysts said.business Updated: Nov 08, 2011 11:40 IST
Crude prices turned lower in Asia on Tuesday as markets focused on Italy's record bond yields as a sign that the eurozone debt troubles were far from over, analysts said.
New York's main contract, light sweet crude for delivery in December, dipped 13 cents to $95.39 per barrel.
Brent North Sea crude for December fell 21 cents to $114.35.
Concerns over Italy's all-time high bond yields sabotaging eurozone debt rescue efforts outweighed Greek progress in forming their government, said Ker Chung Yang, commodity analyst for Phillip Futures in Singapore.
"Italy has overtaken Greece as the prime threat to the stability of the eurozone after the bond surge," he told AFP.
"The borrowing cost for Italy has risen to its highest level... the level is unsustainable for its debt," Ker added.
Borrowing rates on Italy's 10-year bonds hit a record 6.676 percent on Monday, although it had eased slightly to 6.583 percent in Asia later on Tuesday.
After seeing borrowing costs hit the levels that triggered bailouts for Greece, Ireland and Portugal, the eurozone's third largest economy decided to submit to international oversight, a move intended to buy confidence and time.
Traders were also nervously watching a critical parliament vote on the 2010 Italian budget scheduled for 1500 GMT as Europe pressured Rome to implement long-promised economic reforms to avert a debt blow-up.