Oil prices fall on Europe's persistent debt problems, weaker US economic growth, fresh sanctions against Iran

24-Nov-11

Oil prices fell hover near US$96 on Europe's persistent debt problems, weaker economic growth in USA and fresh sanctions against Iran over its nuclear program. Benchmark crude on the Nymex for January delivery dipped to US$96 after rising to US$98 in New York on Tuesday. In London, Brent crude for January delivery fell to US$107.6l on the ICE Futures exchange. Signs that the Eurozone nations are edging closer to a recession are growing. This would slow industrial activity in Europe and in countries around the world that export to Europe, as well as result in a reduction in Europe's demand for oil. The euro's slide vs the dollar also tends to push down oil prices by making crude more expensive for investors holding other currencies. The Commerce Department reported that the US economy grew 2% in Q3, less than the preliminary result of 2.5% it announced last month. Concerns abound that new international sanctions against Iran could lead to reduction in oil supply.