BLBG: Oil Fluctuates, Reversing Gain After ECB’s Draghi Says Risk ’Substantial’
Oil fluctuated in New York, reversing a 1 percent gain after European Central Bank President Mario Draghi said the region’s economy faces “substantial downside risks.”
Oil erased an advance after Draghi said at the European Parliament in Brussels today that “financial market tensions are continuing to dampen economic growth.” The price rose earlier on concern the death of North Korea leader Kim Jong Il will raise geopolitical tension.
“It seems like that every time Draghi talks, it’s bearish for commodities,” said Phil Flynn, an analyst with PFGBest in Chicago. “Initially oil was rallying on the uncertainty coming out of North Korea but now the market is more fearful about what’s happening in Europe.”
Crude for January delivery rose 10 cents to $93.63 a barrel at 11:51 a.m. on the New York Mercantile Exchange. The more actively traded February contract rose 7 cents to $93.82.
Brent oil for February settlement on the London-based ICE Futures Europe exchange increased 33 cents, or 0.3 percent, to $103.68 a barrel.
To contact the reporter on this story: Moming Zhou in New York at Mzhou29@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
