Brent falls by more than $1/bbl as eurozone divisions widen

27 June 2012 11:34  [Source: ICIS news]

LONDON (ICIS)--The front-month August Brent contract weakened by more than $1.00/bbl on Wednesday, pressured by widening divisions across the eurozone.

By 09:30 GMT, the August ICE Brent contract fell to an intra-day low of $91.70/bbl, a loss of $1.32/bbl compared with Tuesday's settlement. The contract then edged a little higher to trade around $92.20/bbl.

At the same time, the front-month August NYMEX WTI contract was trading around $78.95/bbl, having touched an intra-day low of $78.68/bbl, representing a loss of 68 cents/bbl against Tuesday's close.

France’s newly elected socialist president Francois Hollande will meet Germany’s chancellor Angela Merkel later on Wednesday to push for a deeper fiscal union by issuing euro bonds, an idea which has been repeatedly rejected by Germany.

Divisions between eurozone countries are being highlighted as Rome and Madrid continue to press the German chancellor to share debt liability between members of the single currency.

Prices are also being pressured by Cyprus, which has requested financial assistance from its eurozone partners earlier this week, the fifth eurozone nation to request bailout funds since the financial crisis.

By: Kawai Wong
+44 20 8652 3214

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