Oil prices fell sharply, weighed down by concerns that the fragile global economy may hit demand, although the risk of supply disruptions between Iran and Western countries due to the tense situation still remains.

The protests in Spain against austerity measures have increased fears of a three-year extension of the debt crisis in the euro zone. At the same time, U.S. companies have to reduce profits amid the global slowdown.

Both contracts for crude oil sent to its first monthly decline in three months, even despite the fact that earlier this month, prices reached a four-month high.

In Spain, protesters clashed with police in the capital, as the government prepared a new package of unpopular austerity budget for 2013, which will be announced on Thursday.

Investors also remain concerned about weak demand in China, which is the second largest oil consumer in the world, as small firms, which are the main driving force of economic growth, the lack of money.

Despite the drop in oil prices on Wednesday supported by rising tensions in Iran and the rumors of a possible reduction in the supply of key seller of oil to Asia.

October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $89,48 per barrel.

November futures price of North Sea Brent crude oil mix is ​​now $108,94 a barrel on the ICE Futures Europe Exchange.

Gold prices fell more than 1 percent against the strengthening dollar and falling stock markets and other commodities, combined with profit-taking before the end of the quarter.

Also to reduce the cost of gold has affected the information that the Spanish government bond yields rose above 6% on the fact that, the Spanish province continue to require financial assistance from the government in Madrid, which could lead to the need for additional international aid to Spain, and early elections. The government is considering the possibility of Andalusia ask Madrid financial support of almost 5 billion euros. Catalonia, Valencia and Murcia have already asked for help to Madrid.

Gold reserves are supported by exchange traded funds, increased by nearly 300,000 ounces on Tuesday to a record 74.063 million ounces,

At the same time, the appetite for gold from India remains fragile. Importers of gold stayed away from deals after prices rose to two-week low due to a weak rupee.

October futures price of gold on the COMEX is now $1740.70 an ounce.

Change % Change Last

Oil $91.23 -0.14 -0.15%