Euro zone troubles throw a curveball to oil investment

US crude prices slipped yet again, falling for the sixth day, as the perpetually rising fuel stockpiles in the US prevented the commodity from shifting its downward momentum. Debt issues surrounding Europe also caused negative pressure for oil investments.

Despite the rapidly waning distillate and gasoline stocks, soaring crude inventories sacred off traders, as the total count of the fuel in Cushing rose to its highest mark in more than two decades. Crude stockpiles gained almost 4 million barrels over the past week, as opposed to the 2 million that were initially predicted.

Greece’s inability to elect an adept coalition government was another major detriment factor for crude oil investment. Though the considerable 5 billion euro bailout package now extended to the addled nation kept a bottom under high risk commodities, its long term future still appears rather grim.

France’s election results delivered yet another hit to the already fragile crude sector. The new socialist government set in place by the nation is expected to discontinue the austerity measures promoted by Sarkozy’s office, instilling fears into traders that France will collapse back into a recession in the near future.

Oil investment in the US fell 0.21% today, with West Texas Intermediate retreating 20 cents to $96.81 per barrel on NYMEX markets. The benchmark commodity dipped as low as $95 at some point during the session, before making a small comeback on the charts while still remaining firmly in the red.

Waning turmoil in the Middle East removed one of the steadiest lines of support from crude oil investments, as a continuation of Iran-US altercations now seems unlikely.

By: Chris Termeer