Asian Current Oil Price Fell Near $90 a Barrel

Recent current crude oil prices in Asia dropped to almost $90 a barrel in the midst of expectations that the struggling economy of Europe will weaken global demand for crude.

At midday in the NYMEX, benchmark crude price for delivery in July was lower by 38 cents at $90.38 per barrel. The contract further dropped by 10 cents to close at $90.76 per barrel.

In London, Brent crude price for delivery in July was lower by 31 cents for a per barrel oil price of $106.37.

Crude has declined by 15% in the past four weeks because of investor worries that the political issues in Greece could cause a disorderly exit of the country from the euro as a common currency.

Over the past week, investors have carefully observed the deteriorating economy of Spain. Recently, Spain released that its retail sales fell by 9.8% in the month of April compared to last year while Egan-Jones credit rating agency further reduced its debt rating. That is the third reduction for the month.

The shaky economy of Europe has also affected the euro, whose fall has caused dropping oil prices in the past weeks. Whenever the dollar strengthens, dollar-priced commodities, like crude oil, become more costly to investors using other currencies.

The euro recently fell in New York from $1.2487 to $.12463.

In other fuel trading, the price of heating oil was lower by 0.3 cent at $2.81 a gallon. Gasoline prices rose by 0.2 cent for a price of $2.83 a gallon. The cost of natural gas grew by 1.5 cents for $2.50 for every 1,000 cubic feet.

By: Chris Termeer