Oil prices oscillate with Europe's yo-yo confidence

Published July 31st, 2012 - 12:45 GMT

Oil fluctuated in New York as European economic confidence worsened in July amid speculation that European policy makers will act to resolve the region's debt crisis.

Prices swung between $89.40 and $90.95 as an index of executive and consumer sentiment in the euro area dropped to 87.9 this month from 89.9 in June, the European Commission said in Brussels. That's the lowest level since September 2009.

Crude for September delivery slipped 3 cents to $90.10 a barrel on the New York Mercantile Exchange.

Brent oil for September settlement fell 31 cents, or 0.3 per cent, to $106.16 a barrel on the London-based ICE Futures Europe exchange.

The United States Federal Reserve's Federal Open Market Committee will consider the need for more stimulus at a two-day meeting that ends August 1.

ECB president Mario Draghi will meet US treasury secretary Timothy Geithner in Frankfurt today. -Bloomberg News
Draghi is also trying to persuade policy makers to agree on a multi-pronged approach to reduce bond yields in countries such as Spain and Italy, two central bank officials said on July 27, asking not to be identified because the talks are private. 

© Muscat Media Group

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