Oil prices dip as news about Spain bailout hit the market

Oil prices dip as news about Spain bailout hit the market

Singapore: (Wednesday, May 30, 2012) Oil prices in the Asian markets observed a declining trend as the news about debt ridden Spain going for a bail out  roiled.

The oil prices came under pressure as the euro plummeted amid many of the union’s partner countries suffering on economic fronts, making dollar-priced oil more expensive and affecting the demand negatively.

West Texas Intermediate, one of the New York’s main contracts, crude for delivery in July was down 41 cents to $ 90.35 per barrel, while Brent North Sea crude for July shed 43 cents and pulled down the prices to $ 106.25 in morning
trade.

Commenting on the situation, an analyst from DBS Bank said that Spain was the main worry for euro-zone’s debt crisis. He said, “Spain remains the key worry for the eurozone debt crisis, eclipsing optimism in Greece that the pro-bailout
conservatives are leading the polls ahead of next month’s elections.”

“As far as the euro-zone crisis is concerned, the market does not see the light at the end of the tunnel” he added further.

The cash starved Spanish government on the other side has announced new bonds to finance debt-struck regions. As the banks strive to cope with the bad loans, there are fears that the country look forward to seeking international
aid.

This development has created an interesting situation on a different front. That is, across the Atlantic, analysts forecast US crude inventories to remain at the highest level for this time of the year in 22 years, indicating faltering
demand in the world’s largest oil-consuming economy.

Short URL: https://www.newspakistan.pk/?p=24083

Posted by Fayyaz Yaseen on May 30 2012. Filed under Business, Latest News, Pakistan, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry