Bloomberg News

Oil Drops, Heads for Biggest Weekly Fall in Six on Europe Debt

June 17, 2011

June 17 (Bloomberg) -- Oil fell, heading for its biggest weekly decline in more than a month in New York on concern the Greek debt crisis will threaten Europe’s economic recovery, curbing fuel demand.

Futures slid as much as 0.4 percent today, giving up earlier gains after Luxembourg’s Prime Minister was reported as saying Greece faces “an extremely difficult process.” Crude is down 4.7 percent this week after tumbling as reports showed U.S. manufacturers turned pessimistic in June and demand for diesel declined.

Crude for July delivery was down 37 cents at $94.58 a barrel in electronic trading on the New York Mercantile Exchange at 2:27 p.m. Sydney time, after rising as much as 45 cents. The contract yesterday gained 14 cents to $94.95 and is up 23 percent the past year.

Brent oil for August delivery was down 47 cents at $113.55 a barrel on the London-based ICE Futures Europe exchange. Prices are 44 percent higher the past year.

Jean-Claude Juncker, who leads the group of euro-area finance ministers, was cited in an interview in the German newspaper Tagesspiegel. The euro dropped against the dollar, limiting the appeal of commodities priced in the U.S. currency. The euro slid to $1.4147 from $1.4204 yesterday in New York.

To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net


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