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Crude Oil Falls, Pares Losses on Hopes for Spain

June 8, 2012 at 20:23 by Vladimir Vyun

Crude oil rebounded from its earlier losses today on hopes that Spain will get rescue. There are rumors that eurozone finance ministers are planning to meet on the weekend to discuss a bailout for the indebted country. Traders were happy to hear that European leaders do not sit idle and try to do something. Earlier, crude was heading to weekly losses, but now it looks like the commodity will post a weekly gain.

The earlier drop was caused by negative macroeconomic data coming from Europe. French budget balance deficit deepened and Italian industrial production contracted 1.9 percent in April from a month before. Yesterday’s comments of Federal Reserve Chairman Ben Bernanke continued to spoil traders’ mood today. For now, market sentiment somewhat improved, allowing oil to pare losses.

July futures for delivery of crude oil slipped $0.72 (0.8 percent) to $84.10 per barrel on NYMEX. Prices headed to a 1 percent gain this week. Brent crude advanced from $99.22 to $99.97 per barrel as of 20:13 GMT on ICE today, following the earlier decline to $97.20.

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