Santander is downgraded

 
City A.M. Reporter
THE PRICE of oil tumbled three per cent yesterday, with US crude at its lowest for the year, thanks to fears that the Eurozone debt crisis will engulf more countries and threaten petroleum demand.

Also pressuring prices, top exporter Saudi Arabia said Opec may need to raise oil output targets at its Thursday meeting in Vienna.

Meanwhile, gold, normally a safe haven asset in economically uncertain times, only made gains of 0.2 per cent to close below $1,600 an ounce.