Crude falls on global commodities markets
Crude oil fell on the New York commodities market today, extending its losses from last week amid ever-persisting worries over Europe and its struggle with debt. Continued concern over the region’s inability to handle its spending did more than plenty to offset OPEC’s decision to cut production rates, causing the oil commodity prices to fall back on the charts.
Late last week, Europe’s leaders emerged with a historic fiscal union aimed at cutting down on the region’s spending and bolstering its faltering bailout fund. The creation of the union quickly gave way to a rally in crude oil on Friday, which saw both Brent and West Texas Intermediate to post significant gains. However, that first wave of euphoria abated swiftly, instead giving way to heavy criticism, which focused mainly on the fact that the union’s austerity measures would essentially cripple demand from Europe. Britain’s unwillingness to concede with the terms of the union led to the nation’s exclusion from it.
Meanwhile, OPEC’s officials issued a report stating that the group’s most prolific members would likely cut production quotas in order to let Libya and Iraq integrate their increased output into the ranks without throwing their collective rates off balance.
Analysts have expressed views that the support the crude is seeing from the Middle East, both in the form of OPEC and Iran’s ongoing disputes with the West will likely continue to cause the fuel to climb steadily on the charts, despite obstacles presented by European debt. China’s re-launched expansion efforts are also expected to bolster both raw metals and the oil commodity futures over the coming year.
WTI crude for delivery in January fell 37 cents to $99.04 per barrel in electronic trading on the New York Mercantile Exchange, while Brent crude slid 48 cents to $108.14 per barrel on the ICE Futures Exchange in London.