Oil fell from the highest level in almost four weeks in New York, trimming a second weekly gain, after a cut in Spain's credit rating renewed concern that Europe's faltering economy may curb fuel demand, Bloomberg reported. It said futures slipped as much as 0.8% after New York-based Standard and Poor's reduced Spain's rating to BBB+ from A and said the nation may have to provide fiscal support to the banking sector as the economy contracts. Prices also dropped after reaching technical resistance. West Texas Intermediate crude may decline next week after economic confidence in the euro-region fell and the U.S. economy grew less than forecast, a Bloomberg News survey showed. Crude for June delivery slid as much as 81 cents to US$103.74 a barrel in electronic trading on the New York Mercantile Exchange. It was at US$104.30 at 1.36 p.m. London time. The contract rose 43 cents yesterday to US$104.55, the highest close since April 2. Prices are up 1.2% this week and have posted a similar gain this month. Brent oil for June settlement on the London-based ICE Futures Europe exchange declined 34 cents, or 0.3%, to US$119.58 a barrel. The European benchmark contract's premium to U.S. futures was at US$15.28 a barrel. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Source