Brent crude saw a two dollar drop in prices this week, as concerns about the euro zone debt crisis reduced demand for riskier assets. Earlier in the week, Spain and Italy’s borrowing costs rose significantly after Spain requested a Euro 100 bln bank bailout from the EU. Concerns mounted as traders remained unconvinced that this would be enough to resolve the country's fiscal problems and prevent it from asking for a full bailout, amid fears that Italy could follow Spain and ask the EU for financial aid.
Additionally, at a mid week meet in Vienna, Organization of Petroleum Exporting Countries (OPEC) decided to leave production quotas unchanged, further pressurizing crude. OPEC said it would reduce production in July to ensure that it does not exceed the current 30 mln bps limit.
18-Jun-12 
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