Oil falls on renewed concerns about Europe

NEW YORK (AP) — The price of oil is falling on heightened concerns about Europe's debt-ridden economy.

Borrowing costs soared for Spain and Italy Monday, reaching levels that are considered unsustainable for more than a few months. Spain and about a third of other eurozone nations already are in recession, and many analysts fear that other European nations will follow.

As Europe struggles, its demand for manufactured goods from the U.S. and China will likely decline. China already is predicting slower economic growth in the third quarter. Those trends could lower world oil demand.

Benchmark U.S. crude prices fell $2.88 to $88.96 per barrel in New York while Brent crude lost $3.32 to $103.51 per barrel in London.

Alaska North Slope crude was trading at $104.86, down $2.48 from its closing price on Friday.