New York Crude Futures Fall after Four-Week Recovery Period
After four weeks of slowly, but steadily recovering its standings, crude oil futures fell once again in New York. The slip comes amidst growing worries over Europe’s unclear plans over resolving the continent’s severe debt crisis, and the worldwide economic downturn that would ensue.
The oil commodity’s dip was aggravated by the strengthening U.S. dollar, and the subsequent shakier ground of the euro. The European Union’s meet in Poland this week was inconclusive as far as its plans over Greece’s debt situation. Many are afraid that the nation will likely default on its debt, and despite the E.U. promising aid, the vagueness of its plans since does not inspire much confidence in the matter. The 17 nations represented in the Union total over 12% of worldwide demand for crude oil, and against such insecurity, the oil commodity futures faltered.
London analysts have issued a statement saying that “as long as the concerns over Europe’s lack or debt resolution persist, the markets will continue to swing back and forth.”
Crude oil prices took a rather drastic fall for October delivery, dipping almost a dollar, before settling at $88.42 per barrel. These figures are likely to see a slight increase in the next few days, yet the New York Mercantile Exchange prediction figures look grim.
Brent crude futures however remain on a rise, increasing 50 cents, and now settling at $112.80 per barrel. The company’s futures have risen an astonishing 44% over the past few months, a grand feat to accomplish in such tough economic times.
The weakened positions of the euro played a major part in crude oil’s fall, as the oil commodity’s dollar pricing appears much less appealing to the foreign investor.
Crude oil’s fall comes amongst many forecasts over the product’s supposed rise. After a few volatile months and the severe beating the oil commodity took during the recession years, many experts were expecting a slow recovery. However, despite Friday’s numbers faltering on the predictions, the overall opinion seems to persist that with enough time and a marginally more stable market, the commodity can remedy its standings.
To view this video you must have IE9 or better.