By MarketWatch
LONDON (MarketWatch) -- Oil futures joined other assets in a steep drop on Tuesday as worries over Korean tensions and Spanish banking woes hit energy contracts.
Crude fell $2.44, or 3.5%, to $67.64 in electronic trading, joining metals futures, global stocks and the euro in broad retreat. See Indications for more.
"Oil prices have come under renewed pressure after the brief bounce yesterday as the market grows increasing concerned over the European debt crisis and over concerns that there are adequate supplies in the market," said analysts at U.K. broker Panmure Gordon.
After the close of trade, the American Petroleum Institute is due to publish inventory data.
Separately, a tanker and a bulk carrier collided in the Singapore Strait, resulting in 2,500 metric tons of crude spilling into the sea, according to the Maritime and Port Authority of Singapore.
Weather permitting, BP is due to attempt its 'top-kill' operation on Wednesday to stop the flow of at least 5,000 barrels of oil a day in the Gulf of Mexico.
