Crude oil prices fell sharply Monday morning, giving up $3.54 to $88.29 per barrel on the New York Mercantile Exchange.
A jump in yields on benchmark 10-year Spanish bonds to 7.5 percent put investors on edge across Europe, sending equity markets lower across the continent.
Stocks on the CAC 40 index in France were down 3.2 percent, while the DAX 30 in Germany tumbled 3.8 percent. The FTSE 100 in London shed 2.41 percent. Stocks were also lower in Asia with declines sharpest in Hong Kong, where the Hang Seng index fell 2.99 percent.
In New York, gasoline shed 8.66 cents to reach $2.7579 a gallon.
Home heating oil lost 8.12 cents to hit $2.8426 a gallon.
Natural gas posted an 2.9 cent gain to hit $3.112 per million British thermal units.
At the pump, the national average price of unleaded gasoline rose to $3.471 per gallon from Sunday's $3.467, AAA said.