LONDON (SHARECAST) - Crude oil futures shifted direction on Monday as concern about Europe's debt problems returned and sent the dollar higher. Crude for December delivery fell 85 cents to trade at $98.14 a barrel on the New York Mercantile Exchange. ICE December Brent crude oil settled $2.27 or 2% lower at $111.89 a barrel. The contract expires on Tuesday. Crude prices had enjoyed strong gains last week and on Friday puckered up to $100 a barrel on optimism about Italy's new leader but by Monday traders took a step back. Investors fretted about a report from Moody’s on the European Financial Stability Fund's effectiveness. Meanwhile a report from Der Spiegel said German officials are planning for a Greek exit from the Euro. Market sentiment was further bruised as Italian government 5-year bonds reached a rate of 6.29%. The stronger dollar also made crude more expensive for holders of other currencies. Analysts said traders also took a breather ahead of inventory data from the American Petroleum Institute and the more widely watched stockpile data from the Energy Information Administration on Wednesday. Among precious metals gold eased lower in relatively quiet trading on Monday as investors kept a close eye on developments in the euro zone and the dollar’s movements. Gold for November delivery fell $9.70 to settle at $1,777.80 an ounce on the Comex division of the New York Mercantile Exchange as investors turned to the safety of government bonds. Silver for December delivery lost 66 cents to close at $34.02 an ounce while December copper settled up 2 cents at $3.49 a pound.

Source