LIV: Crude oil prices fall heavily, following stock markets lower
Crude oil prices have fallen over three percent in trading today as global stock markets tumbled lower and risk appetite dwindled on renewed worries over Eurozone debt and fiscal problems.
WTI Light crude oil futures for August delivery were trading down at $75.60 on the NYMEX at 16.00 GMT, while in London, Brent crude oil futures also fell over three percent at $75.06 per barrel on the ICE Futures Exchange.
European shares fell towards a three-week low, Shanghai’s equities index lost more than 4% and Japan’s Nikkei was poised for its worst quarter since 2008 as the US dollar rose against the Euro.
The negative economic sentiment was also felt in Europe, where equities dropped ahead of Thursday’s expiration of a massive package of loans to euro-zone banks by the European Central Bank.
Concerns about Europe’s financial health rattled the Euro, sending it to 2 week lows against the US dollar and adding pressure to crude oil prices. A stronger greenback makes the purchase of dollar denominated oil more expensive for market participants using other currencies.
