World oil prices slid to new multi-month lows today as the market was rattled once again by concern about the outlook for demand linked to the eurozone debt crisis, analysts said.
Brent North Sea crude for delivery in July struck $106.40 per barrel, which was the lowest point since December 21. The contract later stood at $106.97, down 52 cents compared with Thursday's closing level.
New York's main contract, West Texas Intermediate (WTI) crude for delivery in June sank to $91.60 a barrel, hitting the lowest level since November 3. It later stood at $92.55, down one cent.
Overnight, Moody's slashed the ratings of 16 banks in Spain by between one and three notches, citing "renewed recession, the ongoing real-estate crisis and persistent high levels of unemployment". It also blamed the reduced creditworthiness of the government.
Fitch meanwhile downgraded Greece's credit a notch, to CCC from B-, saying it was vulnerable to default amid political uncertainty over Athens's commitment to a crucial bailout plan and its possible exit from the euro zone.
Prices have fallen considerably after soaring on the back of Middle East tensions earlier this year.
In Greece, a caretaker technocrat government took office on Thursday to organise the debt-plagued nation's second elections in just six weeks after an inconclusive May 6 vote.
The polls left Greece in limbo, pushing the financial markets and euro down sharply, and the new election on June 17 offers no guarantee of a viable government able to implement an EU-IMF bailout that has divided the country.
