Brent crude oil futures open today’s trading session lower, near $108 a barrel and may take further direction as the EU debt summit this weekend may help forecast short term oil prices.
Latest Brent Oil Price
In London, Brent crude oil futures for December 2011 delivery was trading at $107.96 a barrel, 07.20 GMT on the ICE Futures Exchange. The European contract closed off Wednesday’s session down 2.4 percent at $108.50.
European Summit Looming
A French German split over Europe’s rescue strategy emerged as finance ministers prepare to meet over the next few days.
The disagreement over the ECB’s role threatens to stymie progress on the banking and economic questions needed to deliver the comprehensive strategy demanded by global policy makers.
Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro finance ministers, indicated an impromptu meeting of European leaders in Frankfurt last night failed to resolve differences. “We are still meeting,” he said as he departed.
Meanwhile, German Chancellor Angela Merkel said the European Union summit on 23rd October will not be the end point of the debt crisis that requires more than a magic wand to solve.
Investors are hoping European leaders at Sunday’s summit will agree steps to ease Greece’s debt, strengthen the capital of banks exposed to euro sovereign debt and leverage the currency bloc’s EFSF rescue fund to firefight any contagion.
“The market decided to focus on what’s happening with Germany and France. The disagreement put the cat among the pigeons. Economic growth will be hurt even further because there’s no resolution out of Europe.” said Jonathan Barratt of Commodity Broking Services, Sydney.
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Brent crude oil trading at $108 ahead of EU debt summit
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