Oil prices plunge amid fresh concerns on the Eurozone debt crisis

27-Jun-12

Oil prices plunged on Monday as eurozone debt concerns offset production stoppages in the Gulf of Mexico and Norway, as per AFP. New York's main contract, light sweet crude for delivery in August, slid by over US$1 to US$78.6, while Brent North Sea crude for August fell to US$90.3. A strike by oil workers in Norway propped up Brent contract by two dollars to settle at US$93, while oil on the Nymex inched up to US$79.3 on Tuesday. Over 700 oil workers went on strike in Norway Sunday after pension negotiations broke down. The strike is expected to impact production in Europe. Additionally, Tropical storm Debby’s slow advance toward Florida has forced shutdown of 44% oil production in the Gulf of Mexico. The surge, however, has been offset by concerns about demand on both sides of the Atlantic as the eurozone’s sovereign debt crisis weighs on growth.