BLBG:Crude Oil Slides From Near Its Three-Month High as Euro, Equities Retreat
Oil retreated from near its highest in three months as European stocks pared gains and the region’s single currency declined, signaling renewed concern that the debt crisis will damage economic growth.
West Texas Intermediate futures erased an earlier gain, following yesterday’s rally to the highest price since July 26. The Stoxx Europe 600 Index was unchanged as of 10:46 a.m. in London after gaining 1.2 percent. The euro was 0.3 percent weaker against the dollar at $1.3498.
“For quite a long time the oil price has correlated well with events in the sovereign debt crisis,” said Torbjoern Kjus, an Oslo-based senior market analyst at DnB NOR, who predicts the price of Brent crude will average $105 a barrel this quarter. “I would not be surprised to see prices falling back more. We are risking a banking crisis.”
Crude oil for December delivery on the New York Mercantile Exchange was down 41 cents at $98.96 a barrel at 10:49 a.m. London time. Earlier it lost as much as 98 cents. Prices rose as high as $99.84 yesterday.
Brent oil for January settlement was down 22 cents at $111.96 a barrel on the ICE Futures Europe exchange in London. The European contract’s premium to West Texas crude narrowed to $12.98.
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
