Heightened concerns about Europe push down oil prices
Posted Jul 23, 2012 12:04 pm.
This article is more than 5 years old.
NEW YORK, N.Y. – The price of oil is falling on heightened concerns about Europe’s debt-ridden economy.
Borrowing costs soared for Spain and Italy Monday, reaching levels that are considered unsustainable for more than a few months. Spain and about a third of other eurozone nations already are in recession, and many analysts fear that other European nations will follow.
As Europe struggles, its demand for manufactured goods from the U.S. and China will likely decline. China already is predicting slower economic growth in the third quarter. Those trends could lower world oil demand.
Benchmark U.S. crude prices fell $2.88 to US$88.96 per barrel in late morning trading in New York. Brent crude lost $3.32 to $103.51 per barrel in London.
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