Brent oil price holds near $104 following a big sell off on Monday

The price of Brent crude opened Tuesday’s trading session holding near $104 a barrel following a big sell off on Monday, broadly in line with a 4 percent fall in the price of WTI crude futures.

Latest Brent Oil Price

In London, Brent crude oil futures for September 2012 delivery was trading at $104.02 a barrel, 07.04 GMT this morning on the ICE Futures Exchange. Benchmark US crude prices fell by $3.69, or 4 percent, to finish Mondday at $88.14 per barrel on the NYMEX.

European Debt Concerns

Demand for riskier assets was hit by a surge in Spain’s borrowing costs, which came after the Valencia region asked the central government for financial aid.

Yields on Spain’s benchmark 10 year bonds soared to a euro record of 7.5 percent on Monday, fuelling fears that Europe’s fourth largest economy could become the next member of the monetary union to ask for a full bailout.

In addition, German magazine Spiegel reported that the International Monetary Fund (IMF) is reluctant to provide further aid to Greece.

This morning credit ratings agency Moody’s has warned the outlook for Germany’s AAA credit rating is negative, the first step towards a possible downgrade. Ratings for the eurozone’s other top-rated economies, the Netherlands and Luxembourg, were also put on negative outlooks.

Concerns over the debts of Europe’s economies are no doubt a large factor for the short term price of oil.

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Brent oil price holds near $104 following a big sell off on Monday