|
Oil prices trading back near $75 amid ongoing Euro concerns
Published on June 1, 2010 by oilprices · No CommentsCrude oil prices are trading back near the $75 mark amid continued Euro debt concerns in Greece, Spain, Italy and Portugal, which continue to weaken the euro against most currencies including the US dollar.
US Light crude oil futures for July delivery was at $74.55 a barrel at midday Singapore time in electronic trading on the NYMEX, while in London, Brent crude oil futures were at $74.60 on the ICE Futures Exchange.
The euro fell against the US dollar yesterday on fresh worries over sovereign debt after the European Central Bank warned euro zone banks faced up to EUR 195 billion in a “second wave” of potential loan losses. EUR/USD hit 1.2246 during early Asian trade, a 3-day low; the pair subsequently consolidated around 1.2261, shedding 0.37%.
“A Greek economic slowdown has minimal effect on global oil demand growth, and thus, the crude price seems oversold,” ANZ bank said in a report. “Nevertheless, continued uncertainty over the Eurozone will threaten investors’ confidence on risky assets and weigh on oil prices.”
Tags: debt, dollar, euro, Greece, italy, oil, oil prices, prices, Spain, trading, US