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Oil Fluctuates as Bernanke’s Comments Mitigate Optimism

June 7, 2012 at 17:51 by Vladimir Vyun

Crude oil fluctuated today as comments of Federal Reserve Chairman Ben Bernanke tempered optimism of traders. Bernanke said in his speech today that the crisis in Europe threatens global economic growth:

Concerns about sovereign debt and the health of banks in a number of euro-area countries continue to create strains in global financial markets.

He also noted that Europe’s problems may be negative for the United States:

The situation in Europe poses significant risks to the US financial system and economy and must be monitored closely.

There were positive factors that mitigated the impact of Chairman’s words. Iran again showed unwillingness to let international inspectors to check its nuclear sites. Saudi Arabia decreased its oil exports after prices of crude fell below $100 level. The People’s Bank of China signaled that it is going to lower its benchmark one-year deposit rate by 0.25 percentage point tomorrow.

July futures for delivery of crude oil gained $0.12 to $85.14 per barrel by 11:54 on NYMEX today. Brent graded of oil traded near $100.53 per barrel as of 17:45 GMT on ICE after opening at $100.85. Brent climbed as high as $102.44 and fell as low as $99.62 intraday.

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