Oil Settles Below $94 on Europe Concerns

MarketWatch

Crude futures closed below $94 a barrel on Tuesday, with traders wary over the prospects for oil demand against a backdrop of political concerns in Greece.

Crude for June delivery fell 80 cents, or 0.8 percent, to settle at $93.98 a barrel on the New York Mercantile Exchange. Prices reached a fresh settlement low for the year.

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"The gravity of Greece unraveling is finally sinking in," said Seth Rabinowitz, who covers commodities as a partner at Silicon Associates.

"Greek politicians appear less than serious about forging an agreement with the government amid an ultimate failure today to do so, which necessitates a new election in June," he said. "This craziness makes traders' heads spin."

Natural gas for June tacked on seven cents, or 2.8 percent, to $2.50 per million British thermal units, poised for its sixth win in seven sessions.