Oil investments on unsteady ground globally
Crude oil prices traded near their lowest marks in more than week on the New York commodities market today, as traders of the fuel continued to speculate that the tumbling economies of Europe and the U.S. will undermine global demand. China’s recent announcement that it fully expects the world to dip into another recession also took a toll on oil investments.
The oil commodity futures fluctuated between gains and losses, before finally settling lower on the commodity index for the day, reporting decreases for a third consecutive session. Crude oil was continually affected by strong signs of economic collapse in Europe, where French and Belgian bonds are now well on their way to reaching the same highs that caused the fall of Greece, Italy and Spain. Spain’s own new austerity-minded government is yielding little results in curbing the dismal global outlook for the debt-addled country.
Germany remains the largest and at the moment, most sustainable economy in the euro zone; however, worse than expected growth projections in the nation may cause a misstep in Europe’s sole remaining domestic line of support, driving oil investments down along the way.
West Texas Intermediate crude oil futures for delivery in January lost 25 cents to settle at $96.67 per barrel in electronic trading on the New York Mercantile Exchange. The American contract has posted tremendous gains over the past seven weeks, yet failed to sustain its rallies in the face of continues pressure from Europe.
Brent crude oil prices for January settlement lost nominal 4 cents to end the day at $106.84 per barrel on the London-based ICE Futures Exchange. Oil investments in the European contract saw some support from the escalating political tension in Iran and Syria.
Crude oil in the U.S. may see great support in the coming year, when the Seaway pipeline connecting U.S. storage hubs in Oklahoma with the refineries along the Gulf Coast begins producing results.