TRD: Oil Prices Continue Fall On Disappointing EU Data
Oil prices have dipped below $93 a barrel today following reports that the Eurozone is still in a recession. GDP in the Eurozone fell at a 0.2% annual rate in the first quarter and is now the longest recession for the currency bloc to date. The EU has now been in a recession for its sixth straight quarter.
Germany was able to avoid recession, but only saw a tiny 0.1% growth for the first quarter. Meanwhile, France saw negative growth sending the country into recession.
This news sent the price of crude oil as low as $92.25 briefly. The price has since recovered slight but is still down around $2 on the day. Oil prices remain under pressure after the IEA raised its forecasts for U.S. production and lowered their prediction for global demand. Rising inventories in the U.S. will also keep supply ahead of demand in the near term.
This surge in production in the U.S. as well as Canada means the dependence on foreign oil could soon be coming to an end.
Commodity traders have also been eyeing news that the EU is looking into possible price rigging in the oil markets. Three separate oil companies including BP and Shell have said they are being investigated. No names were given in the investigation, but the EU said oil companies “may have colluded in reporting distorted prices.”
