The rising Europe’s debt crisis led the oil price fall below $94 a barrel in New York for the first time since December 2011.
“There’s nothing in the oil market that is giving support, ” said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong. “Clearly people are going to focus on rising oil stocks in the U.S. It’s expected prices would fall as inventories build to these levels.”
In June crude delivery was $94.67 a barrel, dropping 11 cents in electronic trading on the New York Mercantile Exchange today, May 15th. Brent for June dropped 1 cent to $111.56 a barrel on the London-based ICE Futures Europe exchange. WTI is expected to decline to $90 a barrel, and Brent to $105, while banks try to solve the debt turmoil. According to technical analysis by FuturesTechs, oil in New York is expected to fall to $88.55 a barrel.
“We want a lower price than where it is now,” al-Naimi said. “We need to get the price to a level of around $100” a barrel for Brent,” said Saudi Oil Minister Ali al-Naimi.