Investors are wary of the Eurozone debt crisis and have moved out of commodities and are turning to safer investments. In addition to Greece’s downgrading by Fitch, Italy has also been downgraded by another ratings agency, Standard and Poor’s.
Results of the Spanish regional elections held over the weekend led to the ruling Socialist Party’s opposition winning votes, which shows the country’s increasing loss of confidence in the Spanish government’s handling of the country’s debt, and concerns are growing that Spain is heading in Greece’s direction.
All that’s currently going on has led to a commodities sell-off today. Additionally, economic data released from China early Monday indicated that one of the world’s largest economies is slowing down, meaning factories’ demand for fuel could drop.
Crude oil lost over $3 as it continued its slide since the open of the trading week from highs of $100.01 to lows of $96.36.
Brent crude futures for June delivery dropped $2.35 to $110.04.