Brent oil prices fell back to $106 a barrel in light trading this morning, following Euro stock markets lower as fears that another global recession is just around the corner eats away at the price of crude oil futures.
Latest Brent Oil Price
In London, Brent crude oil futures for October 2011 delivery was trading at $105.99 a barrel, 07.55 GMT this morning on the ICE Futures Exchange.
European Bank Problems
Revelations that one unnamed bank in the eurozone has been forced to borrow from the ECB to maintain the flow of funds to its business sent waves through the markets and European bank stocks plummeted on Thursday, where the sector saw its largest single day drop since March 2009.
Investors are worried global growth is slowing more than first thought, and are concerned that major economies are heading back into recession.
“This short term downturn is not done yet. The fundamental picture is not that bad but if the overall economy remains weak it is very hard to make a case for a bull run in oil.” said Tony Nunan, a risk manager with Mitsubishi Corporation in Japan.
“The most recent economic data is what’s guiding all asset classes. This means that just about everything but gold is falling right now.” said Adam Sieminski, chief energy economist at Deutsche Bank in Washington.
Euro Markets at Today’s Open
European stocks opened mixed this morning, with investors increasingly disillusioned with efforts by EU authorities to tackle the issue of sovereign debt within the region and worries about a potential double dip global recession.
“Fears about a global recession have increased in recent days on the back of some growth downgrades and the inability of policy makers to get ahead of the current crisis, both in Europe and the US.” said Michael Hewson of CMC Markets.
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Brent oil price hovers at $106, follows Euro stock markets lower
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