NEW YORK: Brent crude oil fell yesterday, touching the lowest level since December, as investors avoided bets on riskier assets with the turmoil in Greece deepening and fears rising of contagion spreading to other stressed euro zone economies.
US crude futures, which earlier rose on hopes that the reversal of the Seaway oil pipeline would help reduce a supply glut at the land-locked delivery point at Cushing, Oklahoma, and on Iran-related issues, fell back into negative territory after the release of a series of weak economic data.
Greece faces new elections on June 17, after inconclusive polls earlier this month left politicians unable to form a government. Whoever emerges as a new leader will have to deal with a country already falling behind on its promises to lenders.
Worries about the health of Spain’s banks also resurfaced after a report that customers at Bankia had withdrawn more than 1 billion euros from their accounts in the past week, though the Spanish government said there had been no exit of deposits from the lender.
Oil futures fell as US stock prices edged lower on a crop of weak economic reports and concerns about the euro zone.
“The oil market, like other risky assets, is within the grips of uncertainty surrounding the euro zone,” said Harry Tchilinguirian, BNP Paribas head of commodities strategy. In London, ICE Brent crude futures for July delivery slipped to a session low of $108.12 a barrel, down $1.63, the lowest intraday price since Dec. 30. By 11:50 a.m. (1550 GMT), it was down $1.31 at $108.44.
US crude fell back to $92.76, down 5 cents, after peaking at $93.88 earlier. On Tuesday, it hit $91.81, its lowest intraday level since Nov. 3.
Oil hits lowest level since December
