Singapore: (Wednesday, July 25, 2012) After sustaining high for a week, oil prices in Asian markets have started to decline. And this time, the decline has been caused by the worsening debt crisis of the eurozone.

Following the market mood, New York’s main contract lost about 18 cents for light sweet crude deals for September and reached to $ 88.32 a barrel. Similarly, Brent North Sea crude for the same month delivery gone down by about
42 cents to end up at $ 103.

The major reason for this sudden decrease in oil prices is the fact that the investors, in the face of deteriorating long-run eurozone crisis, have been spooked. Given the fact that the region’s fourth biggest economy, Spain, has
encounterd some major blows this time, it will require some major interventions for repair and rescue.

Commenting on this situation, a market strategist with the IG Markets Singapore, Justin Harper said, “Spanish bailout worries continue to plague markets… Clearly these interest rates are unsustainable and action will need to be
taken internally or externally to restore some confidence in buying Spanish debt.”

Investors’ interest has also received a blow when the rating agency, Moody, threatened to cut Germany’s coveted top credit rating as the fears about eurozone crisis seem turning into reality.