New York - (AFP) - World oil prices continued to weaken on Monday, in line with the strengthening dollar and the stock market decline due to reduced investor enthusiasm for the euro zone debt agreement last week.
New York's main contract, light sweet crude for December delivery, closed at 93.19 dollars a barrel, down 13 cents from Friday's closing level.
In London, Brent North Sea crude for December delivery fell 35 cents to settle at 109.56 dollars per barrel.
The oil market has been "rally" in handling the deal last week after the debt crisis of the euro zone countries to help reduce the problem of continuing concern in Europe could trigger a new global recession, AFP reported.
However, prices closed lower on Friday and extended losses on Monday as dealers grew skeptical that the deal will fully resolve the debt crisis of the euro zone that have been long run.
While European stock markets fell on Monday, led by a decline in banks as investors fretted about the possibility of their losses as a result of the euro zone crisis plan.
"The perception of risk is higher against the backdrop of the weaker equity markets and the strength of the U.S. dollar puts pressure on oil prices," said Commerzbank analyst Carsten Fritsch.
The European single currency slid to 1.3927 dollars on Monday, making crude oil priced in dollars more expensive for buyers using euros and in turn reduce demand for oil.
Traders look forward to meeting France-Germany on Tuesday, where politicians from both parties are expected to discuss further debt rescue plan agreed last week, dealers said.
"This meeting can be a major issue," said commodities analyst at Phillip Futures, Ker Chung Yang, adding that traders also targeting the U.S. Federal Reserve meeting and U.S. jobs report that kedunya will come out this week.
Elsewhere on Monday, Kuwaiti Oil Minister Mohammad al-Baseeri said world crude oil demand is expected to remain high, and will put pressure on global supplies - even after Libya return to the level of production before the riots.
"Libya return (for full production) is still very slow and is expected to take to reach pre-crisis production," said Baseeri told reporters on the sidelines of Kuwait Financial Forum.
Baseeri said that based on OPEC forecast, world market demand is forecast to grow between 1.0 and 1.5 million barrels per day "for the rest of this year and early next year.
source: antaranews.com
0 comments