Brent oil trading back at $85 as euro’s Greece rating junked

Brent crude oil prices fell in Asian trading on Wednesday as the current Greece euro debt situation worsened after an S&P rating downgrade on Greece’s credit rating to “junk” hit global stock markets, including oil futures and commodities.

Brent crude oil futures for June delivery fell to $85.21 a barrel in light trading on the ICE Futures Exchange.

Greece’s credit rating was slashed to “junk status” on Tuesday afternoon as the troubled state is asking for £40billion in loans from the IMF and european partner countries including France and Germany.

Global stock markets plummeted around the world as ratings agency Standard & Poor’s also downgraded Portugal. “The rating results from our assessment of the challenges that face the Greek government,” said Standard & Poor’s analyst Marko Mrsnik.

Oil prices fell by over two percent yesterday after the news to cut Greece and Portugal’s credit rating and the US Dow Jones slamed 213 points lower.

Greece has already admitted it can’t pay debts coming due shortly and reached for a bailout, but the reluctance of the largest country using the euro, Germany, to fund the largest share of the 45 billion euro rescue by European government and the International Monetary Fund is sending shudders through markets, commodities and oil prices.

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