Oil ends below US$93 on euro crisis concern


THE price of oil fell yesterday as worries persisted about the future of Greece in the European Union and the long-term impact the crisis could have on the global economy.

Some wonder if Greece will be forced to leave the group of countries that use the euro as currency if Greek politicians who oppose austerity measures win next month's elections.

That uncertainty has outweighed positive US economic news. The Labor Department said that weekly applications for unemployment benefits were unchanged last week at a seasonally adjusted 370,000. That indicated modest gains in the job market.

Benchmark oil for June delivery fell 25 cents to settle at US$92.56 a barrel on the New York Mercantile Exchange.

Brent crude, which is used to price many international oil products, fell US$2.26 to finish at US$107.49 per barrel in London.

Crude has plummeted about 12 percent from US$106 two weeks ago amid investor worries that economic growth in the US and China will slow more than previously expected. This week, political turmoil in Greece and growing anti-austerity sentiment in Europe have raised fears of a debt default that could hurt economic growth, undermining crude demand.

A stronger dollar makes crude more expensive for traders using the euro and other currencies and tends to push down oil prices. Earlier yesterday, the euro was down to US$1.2691 from US$1.2725 late Wednesday in New York.

In other energy futures trading, the price of natural gas dropped as mild weather curtails demand in parts of the US while supplies continue to build.

Natural gas fell 2.4 cents to end the day at US$2.594 per 1,000 cubic feet in New York. That's still nearly 70 cents, or 37 percent, above the 10-year low of US$1.907 hit on April 19. Natural gas plummeted earlier this year as a production boom helped fill storage facilities while a mild winter allowed consumers and businesses to use less gas for heat.

Heating oil dropped 4.86 cents to end at US$2.849 per gallon and gasoline futures declined 4.27 cents to US$2.8782 per gallon.


2005- www.researchinchina.com All Rights Reserved 京ICP备05069564号-1 京公网安备1101054484号