The price of oil edged downwards today as a possible downgrade of Spain’s credit rating sparked eurozone debt concerns.

US crude for January fell 16¢ to stand at $88.46 a barrel by 06.12 GMT and ICE Brent dropped 21¢ to $91.99, reports Reuters.

Rating agency Moody’s announced that it may downgrade Spain’s debt rating over concerns about the nation’s mounting debt and 2011 funding needs.

Moody’s does not expect Madrid to follow Greece and Ireland into taking a European Union bailout, but said that it could not rule out that scenario.

Worries about the eurozone debt crisis are also overshadowing positive US economic data.