The energy commodity's first losses in three consecutive trading sessions occurred as bond yields rose to their highest ever in Spain, which very rapidly has emerged as a flashpoint of concern regarding the aggressive nature of the crisis. The Bank of Spain indicated a larger number of loans went unpaid in April, indicating the nation's recession is compelling defaults among consumers and companies.
"There is a bearish economic contagion in Europe and it's essentially bringing prices down," president Michael Lynch with Strategic Energy & Economic Research in Massachusetts told the news source. "Although the Greek news was positive, people are more concerned now about Spain."
At 3:36 p.m. on Monday, crude oil futures fell 1.93 percent, a $1.88 loss to $95.73 per barrel.
The Associated Press reports the sovereign debt crisis is dragging down European demand for crude oil, which is a peril to the reduced pace of economic growth in the U.S. and China. The two nations are the globe's top consumers of the energy commodity.
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