Brent oil price ends the week near $106, Euro debt concerns continue

8 October 2011 8 October 2011

LorieFuller31

Brent oil prices end Friday’s trading session back near $106 a barrel after falling under $100 earlier this week as Euro debt concerns continue to affect markets, whilst a Germany and France leaders meet on Sunday to consider plans for a possible Greek debt default.

Brent Oil Futures – Closing Price

ICE Brent crude oil futures for November 2011 delivery ended the week’s trading session at $105.82 a barrel on the ICE Futures Exchange, $3.59 higher than last week’s closing price of $102.23 a barrel.

The contract traded just 0.1 percent higher yesterday and clawed back 3 percent this week, the most since the week ending 8th July.

Germany and France Debt Talks

Germany and France were split ahead of crucial talks on Sunday over how to strengthen shaky European banks and fight financial market contagion to prepare for a possible Greek debt default.

German Chancellor Angela Merkel and French President Nicolas Sarkozy will meet in Berlin on 9th October to discuss Greece’s debt problems as Greece edges ever closer to a meltdown due to debts it cannot repay.

Fears about Greece are still widespread. Greek leaders are still in talks with officials from the IMF (International Monetary Fund), the European Commission and the ECB (European Central Bank) after weeks of frantic meetings over new austerity measures Greece must take in exchange for fresh aid.

Oil Traders Rattled

The focus on Europe has left oil traders rattled by big overnight price swings, said Tony Rosado, a broker at GA Global Markets.

“It’s been a tough environment to trade. The ranges are pretty fierce and a lot of things happen overnight, so people are missing a lot of moves. You have to be trading at two, three, four, five o’clock in the morning,” Rosado said.

“The oil market is going to continue to move on the latest economic news.” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

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