NewsCrude dropped below $77 with renewed woes surrounding European debt crisisPreviousForecastAnalysisCrude futures receded this morning below $76 per barrel due to effects of renewed fears in financial markets, regarding the EU stabilization package worth almost one trillion dollars not being enough to end the sovereign debt crisis in the region.
In addition, crude's drop today was due to the euro versus dollar's plummet, especially after increasing speculations by investors regarding EU's rescue plan to reduce the budget deficit in indebted nations and add more strain on other nations stalling the recovery from the recession.
The fall came subsequent to the profit taking, especially after futures yesterday rose above $78 per barrel as European ministers agreed upon an loan package for the euro zone worth 750 billion euros to contain the debt crisis, thus attempting to prevent it from leaking into other countries while maintaining a combined rhetoric to defend the single currency, the euro.
Meanwhile, the euro versus dollar dropped to 1.2676 after yesterday's jump around 1.3105, the highest since the fourth of this month, where heightened fears regarding the debt issue in the European nations and specifically since signs of it leaking into other countries have risen, as it is expected to leave a negative mark on global markets and global growth.
Oil futures opened yesterday around $76.15 recording its highest around $78.45 and lowest around $75.85 per barrel, closing trading around $77.20 per barrel.
The S&P GSCI index closed in the US at 514.82 after gaining by 11.35 points; whereas the RJ/CRB commodity index followed and climbed by 3.89 to close around 265.21.
As for NYMEX trading as of 03:00 EST; motor gasoline plunged to $216.240 per gallon by $1.020; heating futures are trading around $210.420 per gallon after dropping by $0.005 to record $4.165 per 1000 cubic feet. In London, Brent fell by $0.750 to $79.370.
Crude opened today around $77.15 after recording its highest around $77.35 and lowest around $75.82 per barrel, while it currently trades around $76.25 per barrel.