By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude oil futures slipped in electronic trading Tuesday, as investors monitored European risks ahead of a leaders’ summit later this week.
Crude oil for August delivery CLQ2 -0.20% fell 25 cents, or 0.3%, to $78.96 a barrel on the New York Mercantile Exchange during Asian trading hours.
The fall adds to losses notched in Monday’s session, when crude was pressured by a stronger dollar and downbeat session for U.S. stocks.
Investors looked ahead to a two-day summit of European leaders, which kicks off on Thursday, amid fresh signs of financial distress in the region.
Cyprus could be the next European nation in line for a bailout, after asking for financial aid on Monday. Read more on Cyprus.
Spain formally asked for help for its banking system on Monday. Later that day, Moody’s Investor Service downgraded 28 Spanish banks by between one and four notches. Read more on downgrade.
The developments added to gloom over an already uncertain global economic outlook, which can reduce expectations for future energy demand.
On the supply front, weekly U.S. oil inventory will be released by the American Petroleum Institute on Tuesday, followed by the more closely watched Energy Information Administration report on Wednesday.
Analysts polled by Platts expect a drop in crude oil stocks of one million barrels, for the week ended June 22.
Virginia Harrison is a MarketWatch reporter based in Sydney.
