Crude extends losses on falling stock markets

20 July 2012 14:33  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures extended losses on Friday afternoon pressured by falling stocks across global markets and renewed concerns over Spain’s borrowing costs.

By 12:40 GMT, the front-month September ICE Brent contract had hit an intra-day low of $105.60/bbl, a loss of $2.20/bbl compared with Thursday's close. The contract then edged a little higher to trade around $106.05/bbl.

At the same time the front-month August NYMEX WTI contract was trading around $90.80/bbl, having earlier touched an intra-day low of $90.66/bbl, a loss of $2.00/bbl against Thursday’s settlement.

Spain’s benchmark 10-year bond yields exceeded 7% on Thursday and the indebted country raised less than €3bn ($3.7bn) in an auction indicating investors are losing confidence in Spain’s ability to repay its debts.

Higher Spanish bond yields forced financial markets, including Japan’s Nikkei 225, China’s Shanghai Stock Exchange and the UK’s London FTSE100, to lose ground on Friday.

($1 = €0.81)

By: Kawai Wong
+44 20 8652 3214

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