Crude futures fall on renewed economic worries after US elections

07 November 2012 13:30  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures softened on Wednesday, falling by more than $1/bbl, amid renewed economic worries following the results of the US elections.

At 10:58 GMT, December Brent crude on London’s ICE futures exchange was trading at $109.73/bbl, down by $1.34/bbl from the previous close. Earlier, the North Sea benchmark fell to a session low of $109.51/bbl, down by $1.56/bbl.

December NYMEX light sweet crude futures (WTI) were trading at $87.40/bbl, down by $1.31/bbl from the previous close. Earlier, the US benchmark declined to a session low of $87.30/bbl, down by $1.41/bbl.

Following the re-election of US President Barack Obama attention switched back to the problems facing the US economy.

These issues include a highly contentious US budget with large tax rises and spending cuts due to be implemented in January. Crude values eased after rising more than 3%  in the previous trading session when prices had been buoyed by a rise in the US equity market and a weaker US dollar.

Meanwhile, attention was also focused on the Eurozone and debt laden Greece. The Greek Parliament is set to vote later on Wednesday on a further round of highly unpopular austerity measures.

The budget measures need to be approved in order for Greece to receive the next tranche of €31.5bn ($40.4bn) of aid from the International Monetary Fund (IMF), the EU and the European Central Bank (ECB)   

($1 = €0.78)

By: James Dennis
+65 6780 4327

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