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Brent oil price falls back to $110 as European markets tumble
Published on September 5, 2011 by oilprices · 2 CommentsBrent oil prices open today’s trading session tumbling back down to near $110 a barrel as European stock markets head lower with EU debt problems back in focus, driving markets and oil prices lower.
Latest Brent Oil Price
In London, Brent crude oil futures for October 2011 delivery was trading at $110.83, 08.25 GMT this morning on the ICE Futures Exchange.
Europe Debt Concerns
Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure for governments to try more radical solutions.
On the markets London’s FTSE 100 Index fell 1.6 percent at the open to 5205.16, while the DAX in Frankfurt lost 2.3 percent to 5410.77 and the CAC-40 Index in Paris slipped by 2.3 percent to 3075.98.
Germany Debt Ruling Looms
A court ruling may reduce the freedom of the German government, the biggest contributor to the euro zone’s bailout fund, to finance rescues of crisis-hit countries such as Greece.
On Wednesday morning, Germany’s Federal Constitutional Court will deliver its ruling, awaited for over a year on suits claiming Berlin is breaking German law and European treaties by contributing to multi billion euro bailouts of Greece, Ireland and Portugal.
Legal experts think the court is highly unlikely to block the contributions altogether. But it is expected to give the German parliament a bigger say in approving them.
Brent to WTI Price Spread
Meanwhile, the spread between front month Brent oil on ICE Futures Europe exchange and WTI oil on the NYMEX was at $25.97 a barrel as of 8.25 GMT, compared with $25.88 at settlement on 2nd September, according to the latest data.
Tags: brent, brent oil price, debt, european, markets, oil, oil prices, oil trading, stock, trading
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The high oil prices are the cause of the recession and the decline in the oil price, still has a long way to go.
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This same pattern was going on with tech when the bubble broke. Get out of the oil markets and take your money before you end up with nothing as oil dives to below $50 a barrel by December.