Oil prices dropped this morning as Europe’s debt crisis and a rise in US oil inventories overshadowed concerns about supply disruptions from Iran and Nigeria.
Brent crude fell by 33¢ to stand at $112.95 and US crude dropped 45¢ to $101.79 a barrel, reports Reuters. Worries over Greece’s debt reduced some of the previous session’s gains made on optimism about US economic growth.
US crude stockpiles were up 397,000 barrels in the week to 6 January 2012, according to data from the American Petroleum Institute. Meanwhile, geopolitical worries over Iranian exports capped losses, but volatility is expected to stay as investors constantly weigh supply threats against weaker demand.