Oil tumbled to a seven-month low on speculation that U.S. crude stockpiles climbed to the highest level since 1990 and as the euro weakened on concern that the debt crisis will overwhelm Spain.

New York futures fell as much as 3.6 percent and Brent oil traded in London dropped below $104 a barrel for the first time this year. An Energy Department report tomorrow is projected to show that U.S. supplies rose 1 million barrels to 383.5 million last week, according to analysts surveyed by Bloomberg. The euro fell versus the dollar as Spain’s default risk increased.

The drop in prices accelerated after a report showed the number of Americans signing contracts to buy previously owned homes fell in April by the most in a year. The index of pending home resales dropped 5.5 percent following a revised 3.8 percent gain the prior month, figures from the National Association of Realtors showed today in Washington.

Oil for July delivery on the New York Mercantile Exchange reached $87.49, the lowest intraday level since Oct. 24. Prices are down 16 percent this month, the biggest drop since December 2008.

Brent oil for July settlement declined $2.94, or 2.8 percent, to $103.74 a barrel on the London-based ICE Futures Europe exchange. The contract touched $103.23, the lowest level since Dec. 19.

Gold prices decline stopped after comments from the European Commission on anti-debt crisis in the eurozone.

Eurozone must accelerate economic growth and reduce debt to regain investor confidence, but it must also move in the direction of the banking union, think of Eurobonds and direct recapitalization of banks through a permanent relief fund, according to the recommendations of the Commission.

The cost of borrowing for Spain in the meantime has exceeded 6.5 percent, while government bond yield at over 7 percent of other countries on the periphery of the eurozone have been forced to apply for financial aid. Against this backdrop, the euro fell to the lowest level in two years against the dollar.

From the macro-economic statistics coming out this week, the impact on the gold market may have data on the growth of the U.S. economy coming out on Thursday, and employment data coming out on Friday.

Stocks of gold-ETF-fund down the third consecutive month, dropping to a four-month low 69.59 million ounces.

The cost of the June gold futures on the COMEX today has grown to $ 1555.8 an ounce, then dropped to $ 1530.4 and is now trading at $ 1547.4 an ounce.

Change % Change Last

Gold 1,548 -20 -1.30%

Oil 90.76 -0.10 -0.10%