Oil Set for Weekly Loss on Debt Crisis, Brent Falls to 2012 Low - report


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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 report.

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 the dollar.

Meanwhile, Enbridge Inc. ( ENB ) and Enterprise Products Partners LP ( EPD ) 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 Coast.

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This article appears in: Investing , Commodities
More Headlines for: ENB , EPD

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