Brent oil price at $82 level as Europe problems hit markets

6 May 2010 6 May 2010

BonTrade

Brent oil prices sank lower to the $82 – $83 mark in trading yesterday as increasing problems in Europe hit global stock markets.

In early trading on Thursday, Brent crude oil futures is currently at $82.69 on the ICE Futures Exchange.

“The market is realising the problem in Europe is not easy to fix,” said Clarence Chu, a trader with market maker Hudson Capital Energy in Singapore. “If the euro collapses, that’s really going to push crude oil prices down.”

“They don’t know what to make of it, and when people are uncertain, they sell.” Colin Cieszynski, analyst with CMC Markets Canada, said the degree of protest in Greece is prompting some to question whether the government there will stick to the tough belt tightening needed to emerge from its fiscal problems.

Brent oil prices have dropped around $6 in the last few trading days, after reaching 18 month highs of $89.15 a barrel last week.