Brent oil trading at $108, may slide further as Europe debt situation gets worse

Brent oil futures open today’s trading session lower near $108 a barrel and could slide further as the debt situation surrounding several European countries looks set to get worse, weighing on stock markets and capping recent oil price gains.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2012 delivery was trading at $108.17 a barrel, 07.15 GMT this morning on the ICE Futures Exchange. Brent oil closed yesterday’s session down a big 3.7 percent at $107.75 a barrel.

European Debt Situation

Markets remain worried about borrowing costs rising to unsustainable levels for European countries such as France and Spain, even as Italy pledged to embark on fiscal reforms to pull itself out of the debt crisis.

Early on Friday, Asian shares fell for a fourth day, while metal prices also slumped as investors exited riskier assets.

“The pull back that we have seen shouldn’t come as a surprise as the euro zone crisis and ballooning costs are having an impact across the board. Markets are just trading from one headline to the next.” said Ben Le Brun, market analyst at OptionsXpress.

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Brent oil trading at $108, may slide further as Europe debt situation gets worse