Oil prices fell to below $104 a barrel Friday in Asia after Standard & Poor's lowered Spain's credit rating by two notches, re-igniting fears about Europe's debt crisis, according to AP. Benchmark oil for June delivery was down 67 cents to $103.88 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 43 cents to settle at $104.55 in New York on Thursday. Brent crude for June delivery was down 49 cents at $119.43 per barrel in London. S&P cut Spain's long-term sovereign credit rating to "BBB+" from "A'' late Thursday amid growing concern a weak economy will undermine tax income and exacerbate budget woes. The credit rating agency also lowered Spain's short-term debt rating and assigned a negative outlook, which suggests the possibility of another downgrade in the near future. Oil prices have hovered between $102 and $104 most of this month as traders weigh the impact of Europe's debt crisis and the conflict over Iran's nuclear program against signs of recovery in the U.S. economy. Investors will be closely watching first quarter U.S. gross domestic product results scheduled to be released later Friday. On Thursday, the Federal Reserve boosted its outlook for this year's economic growth and employment. In other energy trading, heating oil was down 1.1 cents at $3.19 per gallon and gasoline futures fell 0.8 cent at $3.13 per gallon. Natural gas rose 1.6 cents at $2.14 per 1,000 cubic feet.
