WORLD
Crude oil falls in world market
Futures fell as much as 1.7 percent as soaring yields on Italian bonds heightened concern Europe`s third-largest economy won`t be able to finance its debt. U.S. gasoline supplies probably grew for the first time in four weeks, according to a Bloomberg News survey before a government report tomorrow. Oil briefly fell below its 200-day moving average, a technical support level.
“Contagion fears about Italy, Portugal and Ireland are going to dominate for the time being,” Myrto Sokou, a London- based analyst at Sucden Financial Ltd. said. “Investors should be very cautious about all the uncertainty in the euro zone,” which will probably cause crude to drop, she said.
Crude for August delivery fell as much as $1.60 to $93.55 a barrel in electronic trading on the New York Mercantile Exchange, and was at $94.24 at 11:04 a.m. London time. The contract yesterday lost $1.05 to $95.15, the lowest settlement since July 1. Prices have risen 26 percent in the past year.
New York futures outpaced London`s Brent crude, narrowing the gap between the benchmark contracts to $21.40 a barrel from $22.09 at settlement yesterday. Brent oil for August settlement declined as much as $2.29, or 2 percent, to $114.95 a barrel on the London-based ICE Futures Europe exchange.
“Crude is joining in on the selloff,” Andrey Kryuchenkov, an analyst at VTB Capital in London said today by e-mail. “The euro is down yet again, with equities selling off as risk aversion continues to haunt global markets on fears for peripheral debt in the euro zone.”