Oil falls below $110 on euro zone crisis

Thursday, 27 September 2012 03:25 - - {{hitsCtrl.values.hits}}

Reuters: Brent crude oil fell more than $1 per barrel to below $110 on Wednesday, weighed down by a stronger dollar, worries over growth and the euro zone debt crisis as Greece faced its biggest anti-austerity strike for months.

Greece’s transport system ground to a halt, shops pulled down their shutters and hospitals worked on emergency staff on Wednesday as the country’s two biggest unions protested against a new round of belt-tightening.

The strike followed violent protests in Spain, reigniting worries that the euro zone debt crisis is deepening despite efforts by central banks to reflate their economies.

A stronger dollar and a weaker euro also depressed oil after the Bank of Spain said Spain’s gross domestic product fell at a “significant rate” in the third quarter.

North Sea Brent crude oil futures fell $1.04 to a low of $109.41 before recovering to trade around $109.60 by 4.50 a.m. EDT. U.S. light crude oil futures also fell sharply, dropping to an intra-day low of $90.33, down $1.04.

Crude futures surrendered gains made earlier this month when both contracts reached four-month highs on a commodity-wide rally fed by stimulus measures by U.S. and EU central banks.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.