Crude futures weaken on gloomy ECB eurozone forecast

06 December 2012 14:55  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures weakened on Thursday after European Central Bank (ECB) President Mario Draghi painted a bearish outlook for the eurozone.

By 14:30 GMT, the front-month January ICE Brent contract had touched an intra-day low at $107.33/bbl, a loss of $1.48/bbl compared to the settlement on Wednesday. The contract then edged higher to trade around $107.65/bbl.

At the same time, the front-month January NYMEX WTI contract was trading around $86.56/bbl, having touched an intra-day low at $86.27/bbl, a loss of $1.61/bbl compared to Wednesday’s close.

Draghi said in a press conference in Frankfurt that the bank forecast that the eurozone economy will shrink by 0.50% in 2012, more than the 0.40% reduction forecast in September. Draghi also said that weakness in the eurozone is expected to persist into next year.

By: Kawai Wong
+44 20 8652 3214

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