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Crude Oil Suffers as Worries About Europe Plague Markets

July 23, 2012 at 22:13 by Vladimir Vyun

Price for crude oil tumbled today as worries about debt woes in Europe have led to concerns that demand for the commodity would wane. The yield on Spanish debt broke through the 7 percent level, the mark after which other indebted countries were forced to plead for a bailout. Greece is not likely to fulfill promises made to secure an aid, leading to speculations that the country would leave the eurozone.

There are worries that China’s growth may continue to slow. The Asian country is the second-biggest consumer of crude in the world, making its economic growth an important factor for oil prices.

On top of that, there are speculations that Iran may refrain from closing the Strait of Hormuz. Previously, the country threatened to disrupt the supply of oil from Middle Eastern countries in a response to sanctions from Western countries.

Futures for delivery of crude oil in September were down $3.69 to $88.14 per barrel on NYMEX today. Brent crude dropped from $106.77 to $103.18 per barrel as of 22:02 on ICE, reaching $102.42 intraday — the lowest price since July 16.

If you have any questions and comments on the commodities today, use the form below to reply.

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