Oil prices drop more than $3 a barrel – World oil and sas sector update

Oil prices drop more than $3 a barrel – world oil and gas sector update

Pakistan: Oil prices were seen falling more than $3 per barrel on Tuesday after a decision by Greece to call a referendum over its debt bailout threw the euro zone into crisis and as data showed global economic activity was slowing more
quickly than expected. The Greek moved stunned financial markets, sending the dollar up more than 1.8 percent while the euro tumbled. Stock markets and commodities fell sharply.

Investors are afraid the Greek move will undermine Europe’s efforts to stop its sovereign debt woes from spreading and could put other euro zone economies in jeopardy. Bank runs, disorderly default and a Greek exit from the euro no longer
look like wild scenarios, analysts say. “Risk aversion is back,” said Eugen Weinberg, head of commodities research at Commerz bank. “The solution to the euro zone debt crisis that we thought we were celebrating last week no longer seems certain.” ICE Brent
December crude futures fell $3.46 to a low of $106.10 by 1326 GMT.

Brent posted a 6.6 percent gain in October, its biggest jump since April, and after slumping 10.5 percent in September. US December crude futures lost $4.02 per barrel to a low of $89.17 before rallying a little to around $89.70 by 1326
GMT. US crude surged 17.7 percent in October, the biggest percentage gains since May 2009.

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Posted by Ahmed Tariq on Nov 3 2011. Filed under Business, Latest News, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry