Oil prices fell today as weak economic data from Europe raised concerns among investors about global oil demand.
Brent crude slipped 25 cents to $110.30 a barrel, while US crude fell 19 cents to $87.19 a barrel, reports Reuters.
In spite of positive economic data from the US and China during the week, the different business surveys from Europe indicated that the eurozone economy is in its worst condition since early 2009.
Except for factory data that performed beyond expectations, the crucial service sector for the economy – comprising banks, hotels and restaurants – declined significantly.
Investors were also concerned about the likely outcome of today’s European Union’s long-term budget discussion in the wake of a fresh proposal to offer concessions to France and Poland, pushing British and German demands for deeper overall spending cuts to the back seat.
Prices were also influenced by the ceasefire agreed upon by both Israel and Palestine, which now eased supply concerns from the Middle East.
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However, investors now eagerly wait for the next week’s discussions on the US fiscal cliff, which could derail the US economy if it is not addressed.
Image: Brent crude slipped 25 cents to $110.30 a barrel today. Photo courtesy of Lars Christopher Nøttaasen.