Brent oil futures open today’s session back at three month lows near $113 a barrel as the situation that haunts Europe over debt concerns in Greece continues to weigh heavily on the price of oil.
Latest Brent Oil Price
In London, Brent crude oil futures for June 2012 delivery was trading at $112.92 a barrel, 09.09 GMT today on the ICE Futures Exchange.
“Any Greek related news is going to have a bigger impact than usual, there is still a lot of uncertainty. With demand for oil looking bleak and rising inventories, I don’t expect crude oil prices to rebound any time soon.” said Miguel Audencial, a trader with CMC Markets in Sydney.
US Oil Inventories
Signs of rising supplies globally also weighed on oil prices. US crude oil inventories rose 3.65 million barrels last week, the EIA said in its weekly report, more than analyst expectations. But the inventory boost in the EIA data was much less than a rise of 7.8 million barrels reported by the American Petroleum Institute on Tuesday.
Analysts said the uncertainties in Europe were complicating the outlook for China and other dynamic economies.
China Growth Concerns
“You’re seeing significant economic forces within the European Union slip into recession … that causes problems for a Chinese economy that is all about growth, and really can’t handle any set-backs,” said Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Oregon.
“When you look at an export-driven economy like China, whose main customers are contracting, you cannot say that they are going to be able to just internalise all of their demand.”
“Brent keeps stalling and finding resistance trying to get back to its 200-day moving average and US crude is running into support and can’t make a decisive move below its 200-day average,” said Stephen Schork, president of the Schork Group in Villanova, Pennsylvania.
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Brent oil price hangs at three month lows near $113 a barrel
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