Oil prices have seen a sharp fall at end of last week, posting weekly losses under pressure from fresh worries over the situation in the euro zone.
Last week saw bond auctions by Spain and France, the euro zone’s fourth and second largest economies respectively. Yields on European bonds fell amid reports that the European Central Bank (ECB) has been buying euro zone debt. The auction results disappointed the markets- with Spain raising a little over €3.5 bln, and Spain raising 6.975%- short of 7%. 7% is the level of borrowing costs that has forced Portugal, Ireland and Greece to ask the EU for financial aid. France, which sold five year notes on Thursday, saw its average yields jump from 2.31% at the previous auction to 2.82%.
Additionally, data from the US Department of Energy’s weekly inventories a showed that crude stockpiles in the US shed 1.1 million barrels.