Oil falls as Europe debt woes revive economic fear

Oil prices fell on Friday, snapping a string of seven straight higher settlements, as the euro zone debt crisis brought economic concerns back in focus and strengthened the dollar.

By (Reuters)

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Published: Sat 21 Jul 2012, 4:20 PM

Last updated: Tue 7 Apr 2015, 11:57 AM

Brent and US crude futures still posted weekly gains of more than 4 percent, with both contracts touching eight-week peaks on Thursday.

US and European equities slid and the euro weakened broadly after Spain’s heavily indebted Valencia region called for aid, increasing investor fears that the Spanish government is moving toward a full-blown bailout.

“The dollar spiking higher versus the euro on Spain banks needing help pushed oil lower. Some geopolitical fatigue seemed to emerge as well, with the rumours about Assad taking a deal. Looks like if he goes we will get a selloff,” said John Kilduff, partner at Again Capital LLC in New York.

Brent September crude fell 97 cents to settle at $106.83 a barrel, after falling as low as $105.60 intraday.

Front-month Brent jumped 4.33 percent for the week, posting a fourth straight weekly gain and having risen 16.5 percent in the period.

Expiring US August crude fell $1.22 to settle at $91.44 a barrel, off its low of $90.66. For the week, US crude rose 4.98 percent but still headed for a more than 4 percent weekly gain.

US September crude fell $1.14 to settle at $91.83 a barrel.


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