Oil prices fall sharply as doubt circles Europes debt plans

Crude oil prices slumped on the commodities market today, extending their downturn to a third consecutive day, after the Greek Prime Minister called for a popular referendum in order to look over Europe’s plan of solving the addled nation’s soaring economic woes. The announcement of a referendum caused a severe decrease to hit oil investments, as the move by Greece was seen by investors as a potential deterrent to Europe successfully staving off the nation’s sure to come default.

A stronger dollar also negatively affected crude oil futures on the commodity index. The commodity oil investments tend to drop off when the greenback gains ground, as they lose their appeal to foreign traders.

Greece’s decision further entrenched the growing investor concern over the effectiveness and longevity of Europe’s newly formed debt resolution plans. Though crude oil did not fall as sharply as several other high-profile commodity futures, the increasingly shaky ground that the commodity oil currently stands now does not bode well for its stability in the coming year.

West Texas Intermediate crude oil prices for delivery in December fell a considerable $2.49 to settle at $90.70 per barrel in electronic trading on the New York Mercantile Exchange. The U.S. benchmark commodity oil has been on a three day downswing after soaring almost 18% in October.

Brent crude oil futures for settlement in December fell $1.90 and now sit at $107.66 per barrel on the ICE Futures Exchange in London.

The latest reports from China announced that the rapidly expanding nation posted worse than expected manufacturing figures for the month, further affecting the fall of crude oil prices on the commodities market. The nation’s massive development efforts have been one of the major support systems for the struggling crude oil futures.

The U.S. Energy Department is also expected to report a rise in crude oil stockpiles in the nation, dampening trader hopes of another boost in the country’s economic state of health. The slowdown in economic recovery in China and the U.S., the two largest crude oil consumers in the world, will likely cause another dip in oil investments across the border.