Brent oil trading at $105 a barrel as Euro debt concerns shake oil prices

Brent crude oil opens today’s trading session around $105 a barrel as continued Euro debt concerns shake oil prices lower, whilst a recent analysts report from UK accountancy firm Ernst & Young suggest that a Greek default in now unavoidable.

Latest Brent Oil Price

In London, Brent crude oil futures for November 2011 delivery was trading at $104.97 a barrel, 08.32 GMT is morning on the ICE Futures Exchange. Brent crude settled down $3.33, or 3.1 percent yesterday, to just $103.81 a barrel.

Greek Default Unavoidable

A Greek default “now seems unavoidable”, according to analysts at business services group Ernst & Young.

The firm’s quarterly Euro forecast also says that the chance of recession in the euro bloc has increased sharply, which would in turn dent European oil demand.

The report says “Authorities have been slow in trying to tackle the problems facing Greece, Ireland and Portugal. It was hoped that the rescue package for Greece announced in July would bring to an end the long period of indecision and uncertainty. The eurozone sovereign-debt crisis shows no sign of abating. A default on Greek government debt now seems unavoidable. The key question is when this default will occur and how it will be managed.”

Brent oil prices have recent been tracking stock markets lower as the Greek debt and default situation plays out.

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Brent oil trading at $105 a barrel as Euro debt concerns shake oil prices