Crude oil prices down for the third day
Crude oil prices fell today, posting their third consecutive losses on the New York commodity index, and falling to the lowest marks they have touched in more than a week, as Europe’s ever-present debt crisis continued to dash trader confidence in a global recovery. The expected gridlock of the U.S. congressional committee regarding the nation’s deficit cuts has also negatively affected current crude oil prices, pushing the commodity oil further down the sector charts.
The oil commodity futures lost more than 2.1% over the session’s span amid strong signs that the surging borrowing costs in Western Europe may well dip the entire region in another recession. With the U.S.’ own financial state losing steam after months of optimistic data, Europe has little to no support to cushion it from its economic collapse.
Crude oil prices in the U.S. for delivery in January lost $2.06 to settle at $95.61 per barrel in electronic trading on the New York Mercantile Exchange. The American contract is again displaying the high levels of volatility that frustrated and turned away investors at the beginning of the year, and again, that unsteady nature stems from the perpetual anxiety Europe’s debt has wreaked on the commodities market.
Brent crude oil futures for January settlement stand at $106.62 per barrel on the ICE Futures Exchange in London, showing a decrease of 94 cents. The European benchmark was salvaged somewhat from larger losses by the ongoing political disputes in several of OPEC’s supplier nations.
Analysts have stated that given the recent crude oil price history, a prolonged bout of decreases was to be expected from the commodity, which has simply rallied too high to maintain its position on the charts.
Crude oil may get a boost once the Seaway pipeline is launched into operation; however, that will not yield any concrete results until well into the second quarter of 2012.