US Crude Tumbles Below $90 as Europe Spooks Market

Crude oil prices fell on Wednesday as the euro zone debt crisis escalated and reinforced concerns about slowing economic growth, while U.S. gasoline futures jumped more than 3 percent due to depressed inventories and supply uncertainty.

The continuing dispute between the West and Iran over Tehran's nuclear program limited losses for Brent crude, which is more sensitive to supply disruptions in the Middle East and Africa. 

Europe's debt problems deepened as Spain's economy slowed further and anti-austerity demonstrators and police clashed in Athens and Madrid. The euro [EUR=  1.2984    0.008  (+0.62%)   ] slumped to a two-week low against the dollar and the dollar index [.DXY  79.56    -0.41  (-0.51%)   ] strengthened, pressuring dollar-denominated industrial commodities like oil and copper.

"It is 'risk off' today," said Olivier Jakob, energy analyst at Petromatrix in Zug, Switzerland. "The Greek strike and Spanish demonstrations are getting a lot of coverage." 

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