Petrol down on concerns over spread of euro crisis

Petrol was down with the lowering of Japan's sovereign credit rating as the Organization for Economic Cooperation and Development said Europe's debt crisis could potentially damage the global economy.

Futures declined with Fitch Ratings citing limited progress by Japan in addressing its public debt which led to the one-step downgrade to A+ with a negative outlook. The OECD, which advises its 34- member nations on economic policy, found no reason to change the group's 2012 forecast unchanged as it reduced its outlook for the euro area.

According to some analysts, the downgrade for Japan was bearish. They add, June crude was also going off the board today and was adding to the volatility.

Gasoline for June delivery was down 0.31 cent settling at $2.937 a gallon on the New York Mercantile Exchange, which came as the first loss in three days.

A worsening of Europe's sovereign debt crisis ''may materialise and spill over outside the euro asrea with very serious consequences for the global economy,'' OECD chief economist Pier Carlo Padoan wrote in the organization's semiannual report on the global economy.

The remarks come as EU leaders prepare to gather in Brussels tomorrow to discuss measures to revive growth as also to address a political impasse in Greece, where austerity measures have been rejected by voters in elections on 6 May.