SINGAPORE: Oil turned lower in Asian trade on Tuesday as Greek workers launched general strikes in protest over tough austerity measures lawmakers are due to vote on this week.
The strike, intended to last 48 hours, paralysed transport and public services as legislators debated the measures tied to the country's receiving rescue loans to avert bankruptcy.
Analysts have warned that a Greek default risks sparking a contagion across the rest of Europe that many fear this could again shake the global financial system.
New York's main contract, West Texas Intermediate (WTI) for delivery in August, was down five cents to $90.56 a barrel in the afternoon, and Brent North Sea crude also for August dipped 31 cents to $105.68.
"Generally, prices are reflective of the economic condition of the world such as the debt issue in Greece," said Shailaja Nair, an analyst with energy information provider Platts.
Greek Prime Minister George Papandreou begged his parliament late Monday to do its "patriotic duty" and vote to keep the country "on its feet."
Analysts said the markets were also still reeling from the International Energy Agency's surprise announcement that it would release 60 million barrels from strategic oil stocks over the next month to make up for lost supplies from Libya.
WTI has fallen sharply in the past two weeks, and was hit hard last week after the IEA move.
The IEA, which represents 28 oil-importing countries, authorised last week's drawdown to make up for lost output from Libya, where a mass uprising against leader Moamer Qadhafi has practically halted oil production.
Also clouding the US market was new data showing that American consumers have tightened spending.
The US Commerce Department reported Monday that consumer spending in May was virtually unchanged from April, indicating sluggishness in the world's biggest economy and its largest oil consuming nation.
Copyright AFP (Agence France-Presse), 2011
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