Oil headed for a third weekly drop in New York after Germany's
finance minister said Europe's crisis may last another two years
and reports added to evidence of a slowdown in China. Brent fell to
its lowest this year in London, according to a Bloomberg
West Texas Intermediate futures were little changed, after
losing as much as 1%, it added.
German Finance Minister Wolfgang Schaeuble said on France's
Europe 1 radio that "in 12 to 24 months we'll see a calming of
financial markets," sending the euro to a four-month low against
Meanwhile, Enbridge Inc. (
) and Enterprise Products Partners LP (
) reversed the Seaway pipeline to alleviate a glut in the U.S.
Midwest. In China, home prices fell in a record number of cities
last month and car dealers posted inventory levels that
foreshadowed deeper price cuts.
Crude for June delivery was at Us$92.40 a barrel, down 16 cents,
in electronic trading on the New York Mercantile Exchange at 1.48
p.m. London time after falling as low as US$91.60. The contract
yesterday slipped 25 cents to US$92.56, the lowest close since Nov.
2. Prices are 3.9% lower this week and down 6.5% this year.
Brent oil for July settlement dropped 28 cents, or 0.3%, to
US$107.21 a barrel on the London-based ICE Futures Europe exchange
after falling to US$106.40, the lowest intraday level this year.
The premium of the European benchmark to WTI for the same month was
at US$14.46. Earlier it narrowed to US$13.62 a barrel, the least in
two weeks, after the Seaway pipeline reversal allowed oil to be
diverted from its delivery point in Cushing, Oklahoma, to the Gulf