WTI oil futures open Tuesday’s trading session back under $86 a barrel as Euro debt fears drag on stock markets and concerns that a slowing world economy will cut demand for oil.
Latest WTI Oil Price
US Light crude oil futures for November 2011 delivery was trading at $85.68 a barrel, 06.45 GMT this morning in electronic trading on the NYMEX. The contract closed yesterday’s session down 2.6 percent at $86.04.
Greek Concerns
The Greek government has been warned it must forge ahead with hardline spending cuts to secure the crucial next tranche of its international bail out funding. The country is facing demands to sack 100,000 public sector workers, 20,000 more than anticipated to curb its massive borrowing levels.
But the Greek government has claimed that the country is being “blackmailed and humiliated” as it struggles to get a grip on the crisis.
World stock markets fell again yesterday, with oil prices and the euro also down, after fresh worries that Greece could default on its debt repayments.
“Look at what’s happening in Europe. People are beginning to see that it is taking a lot longer than anticipated to resolve the issue. Longer uncertainty means the demand outlook for oil remains weak.” said Oil analyst Jonathan Barratt of Commodity Broking Services.
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WTI oil trading under $86 as Euro debt fears drag on markets
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