Related News
Oil prices retreat on Europe's debt problems
Source: Agencies |
December 17, 2011, Saturday
|
Online Edition
Online Edition
EUROPE'S financial woes pushed oil prices lower yesterday for a third straight day.
The eurozone region continues to wrestle with a mountain of debt, and the only cure at hand appears to be a wave of severe spending cuts and pleas for more international aid. European Union leaders have hammered out a new plan for more central financial control and requirements for balanced budgets, but experts say those measures will do little to reduce current debts.
"That plan was a real bust," independent oil analyst and trader Stephen Schork said. "There's talk of real weakness now."
Spending cuts typically lead to declines in energy consumption. It also means fewer imports of manufactured goods from other countries like China and the US Many experts think that the eurozone is already headed for a recession. Investors remain concerned that widespread bank failures could follow, and it may become increasingly difficult for businesses to raise money as more investors lose confidence in the eurozone economy.
Fitch ratings agency revised its outlook on France to "negative" from "stable" because of the country's hefty debt load. It also is considering a credit downgrade for six other nations that use the euro - Italy, Spain, Ireland, Belgium, Slovenia and Cyprus.
Benchmark crude fell 34 US cents to end at US$93.53 per barrel in New York. Prices fell as low as US$92.52 earlier in the day.
Brent crude, which is used to price foreign oil that's imported by many US refineries, fell 25 US cents to finish at US$103.35 a barrel in London.
The Labor Department reported yesterday that consumer prices stayed flat in November, evidence that inflation is under control. Lower energy costs helped keep prices down overall.
In other energy trading, heating oil fell 2.2 US cents to end at US$2.8005 per gallon, and gasoline futures were virtually unchanged at US$2.4870 per gallon. Natural gas finished unchanged at US$3.127 per 1,000 cubic feet.
The eurozone region continues to wrestle with a mountain of debt, and the only cure at hand appears to be a wave of severe spending cuts and pleas for more international aid. European Union leaders have hammered out a new plan for more central financial control and requirements for balanced budgets, but experts say those measures will do little to reduce current debts.
"That plan was a real bust," independent oil analyst and trader Stephen Schork said. "There's talk of real weakness now."
Spending cuts typically lead to declines in energy consumption. It also means fewer imports of manufactured goods from other countries like China and the US Many experts think that the eurozone is already headed for a recession. Investors remain concerned that widespread bank failures could follow, and it may become increasingly difficult for businesses to raise money as more investors lose confidence in the eurozone economy.
Fitch ratings agency revised its outlook on France to "negative" from "stable" because of the country's hefty debt load. It also is considering a credit downgrade for six other nations that use the euro - Italy, Spain, Ireland, Belgium, Slovenia and Cyprus.
Benchmark crude fell 34 US cents to end at US$93.53 per barrel in New York. Prices fell as low as US$92.52 earlier in the day.
Brent crude, which is used to price foreign oil that's imported by many US refineries, fell 25 US cents to finish at US$103.35 a barrel in London.
The Labor Department reported yesterday that consumer prices stayed flat in November, evidence that inflation is under control. Lower energy costs helped keep prices down overall.
In other energy trading, heating oil fell 2.2 US cents to end at US$2.8005 per gallon, and gasoline futures were virtually unchanged at US$2.4870 per gallon. Natural gas finished unchanged at US$3.127 per 1,000 cubic feet.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
