Does the European financial crisis weigh heavily on markets?
''Oil was poised to cap the biggest monthly drop in more than three years in New York on speculation that slowing U.S. economic growth and Europe's debt crisis will reduce fuel demand.
Crude fell as much as much as 1.5 percent after data showed more Americans applied for jobless benefits last week, ADP Employer Services said companies added fewer positions than expected in May and the economy grew more slowly than estimated. Fitch Ratings downgraded eight Spanish regions' credit, stoking concern the crisis will force lenders to bail out of Spain.
'The unemployment number, the ADP report and the GDP data all combine to create a negative picture for all the markets,' said John Kilduff, a partner at Again Capital LLC, a New York- based hedge fund that focuses on energy. 'Watching Europe go off the rails again this month has been damaging to both confidence and demand.'
Crude oil for July delivery declined 95 cents, or 1.1 percent, to $86.87 a barrel at 10:35 a.m. on the New York Mercantile Exchange. Prices touched $86.53, the lowest intraday price since Oct. 21. Futures are down 17 percent this month, the biggest drop since December 2008, and are 12 percent lower this year.''