Oil declines on European concerns

Oil declines on European concerns

U.S. crude oil price dropped on Wednesday as Italian debt problems raised investors'concerns that the European debt crisis might worsen.

Crude got a boost after U.S. Energy Information Administration reported that U.S. crude inventories dropped 1.4 million barrels last week. The markets had expected to see an increase of 400,000 barrels.

And to adding to the support, British Foreign Secretary William Hague said the British government is considering sanctions against Iran's financial and energy sectors as an punishment of its nuclear program.

But European concerns kept pressuring the markets. Investors feared that Italy would face more sovereign debt risks even after Prime Minister Silvio Berlusconi's resignation decision. Italy's 10-year bond yield rose to a record high of above 7 percent, which caused more worries.

Light, sweet crude for December delivery fell 1.06 dollars, or 1.09 percent to settle at 95.74 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery also fell and last traded at 112.50 dollars a barrel.

Editor: Mu Xuequan

English.news.cn   2011-11-10 06:13:08 FeedbackPrintRSS
NEW YORK, Nov. 9 (Xinhua)