Brent oil price ends week at $112, European debt in focus

ICE Brent oil futures end Friday’s trading session unchanged over last week’s closing price as leaders and central banks scramble together to contain a debt meltdown in European countries, starting with the ongoing situation in Greece.

Brent Oil Futures – Closing Price

ICE Brent crude oil futures for November 2011 delivery ended the week’s trading session at $112.12 a barrel on the ICE Futures Exchange, $0.44 lower than last week’s closing price of $112.56 a barrel.

European Debt Concerns

A weakened global economy would drive oil prices lower and the lack of a certainty about European debt has been pressuring the energy sector. Europe consumes about 18 percent of all crude oil produced globally.

In a meeting on Friday, European leaders confirmed they want to postpone a decision on more Greek bailout moeny until October.

Yesterday’s delay was yet another example of Europe’s halting effort over almost two years to solve its difficulties over too much government debt in some European countries of which Greece and Italy are the debt stars.

Stock markets have been extremely volatile in recent weeks on concerns about the crisis, but barely moved on news from the meeting as expectations were already low.

EU Debt Concern Drives US Dollar Higher

Fears that Greece might not get more rescue money and default have made Greek bond prices plummet, weighed on the euro’s foreign exchange rate and pushing the US dollar higher.

The ICE US Dollar Index, which tracks the US dollar against six major world currencies ended the week strong at 76.593.

Meanwhile, rumours and speculation by public officials about Greece defaulting or leaving the euro have helped keep the sense of crisis alive and well.

“‘Rumours, leaks and comments that bring into question the decisions of 21st July and Greece’s actions regarding these decisions are harmful, not only for Greece but for the eurozone as a whole, and the international economy.” said Greek Finance Minister Vangelos Venizelos.

“It seems as if the solutions in Europe are being pieced together with gum and could very easily come apart.” said Desiree Soulodre, trader at brokerage BCI Corredor de Bolsa.

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Brent oil price ends week at $112, European debt in focus