FXstreet.com (Barcelona) - Crude futures are showing modestly bearish momentum today, as the market´s attention turns to European sovereign debt concerns following Moody´s downgrade of Spain. The front-month contract has reached as low as $102.59/barrel where it begins to find technical support. While uncertainties of unrest in Libya and elsewhere in the Middle East still support crude prices in range to 29-month highs recorded earlier in the week, focus seems to be more on looming debt concerns over the EU which have re-emerged in recent days. In particular, Moody´s today dropped the credit rating for Spanish sovereign debt one notch from Aa1 to Aa2, while Portuguese yields rose to their highest since joining the bloc yesterday amid a weak bond auction. The growing debt jitters in particular are allowing the US dollar to recover from recent lows against its principle rivals, which in general weighs on dollar-denominated commodities like crude due to the fact that they become more expensive on international markets.

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