Oil below $93 pausing after twists in Europe's debt crisisMay 18, 2012 - 10:36 AMT PanARMENIAN.Net - Oil prices hovered below $93 a barrel Friday, May 18 in Asia, pausing after the latest twists in Europe's debt crisis triggered a sharp two-week selloff, the Associated Press reports. Benchmark oil for June delivery was up 4 cents to $92.60 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 25 cents to settle at $92.56 in New York on Thursday. Brent crude for July delivery was up 11 cents at $107.60 per barrel in London. Crude has plunged about 13 percent from $106 two weeks ago because of expectations Europe's debt crisis will slow the global economy and reduce demand for fuel. On Thursday, rating agency Moody's downgraded its credit ratings on 16 Spanish banks while a newspaper reported depositors were rushing to withdraw their money from Bankia, a troubled Spanish bank that was effectively nationalized just one week ago. Investors are also closely watching the U.S. economy, which has shown signs of uneven growth in recent months. The government said Wednesday that crude inventories rose again last week to their highest since 1990. "The oil market remains highly sensitive to any negative macroeconomic news, particularly with stockpiles at 22-year highs," energy trader and consultant Ritterbusch and Associates said in a report. A sustained drop in crude should eventually ease gasoline prices, which would slow global inflation and allow policymakers to implement stimulus measures or loosen monetary policy to boost economic growth. In other energy trading, heating oil was up 0.4 cent at $2.86 per gallon and gasoline futures slid 0.7 cent at $2.81 per gallon. Natural gas rose 3.3 cents at $2.63 per 1,000 cubic feet. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Ucom Celebrates Telecommunication Day May 17 commemorates the founding of the International Telecommunication Union on May 17, 1865. Armenian, Azerbaijani heads of parliament meet in Switzerland President of the Armenian parliament Alen Simonyan met with the Speaker of the Azerbaijani Milli Majlis Sahiba Gafarova. Border residents overnight on highway to protest Armenia’s Residents of Kirants continue to express outrage over the government’s decision to cede land to Azerbaijan. Get Started: An educational platform for young startuppers The Get Started program which operates in two phases is an important platform for young startuppers. |