Crude Fluctuates on Mixed Influences
Crude oil fluctuated today as varied factors drove prices to opposite directions. Oil was rising as tropical Storm Isaac strengthened in the Caribbean Sea and was heading to the Gulf of Mexico. Prices slipped later on concerns that Europe are not making progress in dealing with the debt crisis.
The Gulf of Mexico contributes 29 percent to US oil output, meaning that the potential disruption because of the storm may have a significant impact on supply of crude. Some companies working in the region said that they are going to evacuate part of their working force.
The leaders of Greece, Germany and France meet today and tomorrow. Traders were hopeful about the meetings initially, but now are becoming more skeptical. Some German politicians claimed that Greece’s exit from the eurozone would have no great impact on the euro and the economy of the currency union.
October futures for delivery of crude oil fell $0.12 to $96.15 per barrel on NYMEX today. October futures for Brent crude declined $1.42 (1.2 percent) to close at $113.59 per barrel on ICE.
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