BLBG: Oil Fluctuates On European Confidence, ECB Speculation
Oil fluctuated in New York as European economic confidence worsened in July amid speculation that European policy makers will act to resolve the region’s debt crisis.
Prices swung between $89.40 and $90.95 as an index of executive and consumer sentiment in the euro area dropped to 87.9 this month from 89.9 in June, the European Commission said in Brussels. That’s the lowest level since September 2009.
Crude for September delivery slipped 3 cents to $90.10 a barrel at 9:49 a.m. on the New York Mercantile Exchange.
Brent oil for September settlement fell 31 cents, or 0.3 percent, to $106.16 a barrel on the London-based ICE Futures Europe exchange.
The European Central Bank’s Governing Council is scheduled to meet Aug. 2 in Frankfurt and gauge the effect of its July decision to cut the benchmark interest rate to a record low of 0.75 percent. The U.S. Federal Reserve’s Federal Open Market Committee will consider the need for more stimulus at a two-day meeting that ends Aug. 1.
ECB President Mario Draghi will meet U.S. Treasury Secretary Timothy Geithner in Frankfurt today. Draghi is also trying to persuade policy makers to agree on a multi-pronged approach to reduce bond yields in countries such as Spain and Italy, two central bank officials said July 27, asking not to be identified because the talks are private.
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net
To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net
