BLBG:Oil Slips From Highest in a Month in New York as Germany Damps Rescue Hope
Oil slipped from its highest in a month in New York as Germany criticized as unrealistic hopes for a swift resolution to Europe’s debt crisis.
West Texas Intermediate crude futures were little changed after climbing above $88 a barrel as German Chancellor Angela Merkel, speaking at a briefing in Berlin today, dismissed expectations that rescue plans to be announced at an Oct. 23 summit will speedily address Europe’s problems as “dreams.” Crude advanced earlier on forecasts that China may say tomorrow its economy grew more than 9 percent last quarter.
“There’s optimism that a comprehensive solution for the euro zone debt crisis will be unveiled at the EU summit next week,” said Carsten Fritsch, an analyst in Frankfurt at Commerzbank AG, the fourth most-accurate forecaster of oil prices in the third quarter. “But there is huge potential for disappointment if announcements fall short of expectations, which is very likely.”
Crude for November delivery was at $86.67 a barrel, 13 cents lower in electronic trading on the New York Mercantile Exchange at 12:21 p.m. London time. Earlier it gained as much as $1.38 to $88.18 a barrel, the highest since Sept. 16.
-- Editors: John Buckley, Raj Rajendran
To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
