Oil prices fall amid European bank concerns

Oil prices dipped on Tuesday as news reports about European banks holding risky government debt prompted new fears about global economy.

Risk aversion dominated the market on Tuesday after a Wall Street Journal report said that the recent European bank stress tests understated some lenders' holdings of government debt, spurring fresh concerns about the health of European banks.

Crude futures traded in New York fell to as low as 72.63 U.S. dollars a barrel during trading as investors ditched commodities for safer choices.

Oil prices recovered some of the early losses after news broke that an explosion rocked one of Mexico's major refineries.

Light, sweet crude for October delivery fell 51 cents to settle at 74.09 U.S. dollars a barrel on the New York Mercantile Exchange.

Brent crude for October delivery rose 70 cents to 77.37 dollars a barrel on the International Futures Exchange in London.

Source:Xinhua