Oil Trades Near Six-Month Low as ECB Curtails Greek Banks - report

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Oil traded near its lowest settlement in six months as the European Central Bank suspended lending to some Greek institutions, fanning concern that the region;s debt crisis will hurt fuel demand, Bloomberg reported.

It said West Texas Intermediate pared an advance of as much as 1%, and Brent traded below US$110 for a barrel.

The Frankfurt-based ECB said yesterday it will push the responsibility for lending to some Greek financial institutions onto the country's central bank until they have sufficiently boosted their capital. Oil had gained as Enbridge Inc. ( ENB ) and Enterprise Products Partners LP ( EPD ) prepared to reverse flows on their Seaway pipeline, relieving a supply build-up at the main U.S. storage site in Cushing, Oklahoma.

Crude for June delivery was at US$93.13 at 1.35 p.m. London time in electronic trading on the New York Mercantile Exchange. It earlier rose as much as 91 cents to US$93.72 a barrel. The contract yesterday fell 1.2% to US$92.81, the lowest close since Nov. 2.

Brent oil for July settlement slipped 78 cents to US$108.97 a barrel on the London-based ICE Futures Europe exchange. The contract traded earlier as low as US$109.01, marking the first drop in front-month Brent futures to less than US$110 since Jan. 25. The June contract expired yesterday, falling 53 cents to US$111.71. The European benchmark contract was at a premium to West Texas Intermediate of US$15.43, when comparing July contracts.



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This article appears in: Investing , Commodities

Referenced Stocks: ENB , EPD

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