LONDON: Brent crude oil futures fell $3 to $103.83 a barrel on Monday as investors and traders dumped risk assets over fears that Spain would have to seek an official bailout, and the dollar strengthened, putting pressure on commodities.
By 0811 GMT, the front-month contract was down $2.93 at $103.90 a barrel. US crude futures were down $2.66 at $89.17 a barrel.
Weekend reports that Spanish regional authorities will have to go cap in hand to Spain's central government have driven up Spanish bond yields to critical levels, raising expectations that a sovereign bailout will be required.
The perceived safe haven of the US dollar has strengthened against a basket of currencies to a two-year high, putting further pressure on commodities priced in dollars.
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