Oil prices dropping off a cliff with stock markets in tow

Crude oil prices are dropping off a cliff on renewed concern about Europe’s sovereign debt crisis also hits global stock markets. US Light oil prices fell as much as five percent, the biggest one day drop since February 4th 2010, and the euro tumbled after Deutsche Bank AG Chief Executive Officer Josef Ackermann said Greece may not be able to repay its debt. “The European debt worries are hitting a lot of markets,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “This together with rising inventories, especially at Cushing, will continue to weigh on oil.” Benchmark crude for June delivery lost $3.01, about 4 percent, at $71.39 a barrel in midday trading Friday on the NYMEX. That’s down about 18 percent from the May 3 settlement of $87.15 a barrel, an 18-month high. At one point on Friday, crude traded as low as $71.05. Analysts expect oil prices will fluctuate for months in a volatile market created by plentiful oil supplies, sluggish demand and European financial woes that have weakened the euro and strengthened the dollar. Oil, like most commodities, is priced in dollars. A stronger dollar makes crude more expensive for overseas traders holding other currencies. “We’re going to see this type of price movement where we’ll spend several months clawing our way up 10 or 15 dollars and then in two or three weeks, we’ll give it all of it back again,” analyst Jim Ritterbusch of Ritterbusch and Associates said Friday. On the stock markets, Madrid, Milan, Lisbon, and Greece – all seen as weaker eurozone members left vulnerable in the fallout from the Greek debt crisis – were more badly hit, with Spanish stocks down seven percent today. Crude oil prices gain as traders eye global stock markets Oil prices trading near $85, global stock markets higher Oil prices trading negative on profit taking, stock markets CIBC report says oil prices to stay under $85 until 2012 Why are oil prices so high? Oil is as good as gold! Oil prices again being lead by dollar and euro swings Brent oil price steady at $80 as stock markets shoot higher Brent oil trading back near $80 as euro hits new lows Brent oil price at $82 level as Europe problems hit markets Oil prices back in $85 to $90 trading range, in mixed week Oil prices start the week trading higher on US data Euro in Greek tailspin, US dollar firms & oil prices holding out US Light oil trading higher, near $82 on Goldman, markets Oil prices trading higher amid continued Iceland volcano chaos Oil prices running out of steam on European flights chaos? OPEC would consider raising output if oil prices hit $95 mark Crude oil prices hit 2010 trading high on falling US dollar Oil prices trading up 3 percent on a falling US dollar Oil prices trading higher on Monday amid weaker US dollar Oil prices trading range at $80 mark on US Dollar Index

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Oil prices dropping off a cliff with stock markets in tow