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MTECHTIPS:-Crude oil drops to lowest since December in risk-off trade
Crude oil futures came under heavy selling pressure during European morning trade on Monday, as investors cut their exposure to riskier assets amid concerns over the impact of weekend elections in France and Greece on the euro zone’s ongoing debt crisis.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD97.60 a barrel during European morning trade, slumping 0.9%.It earlier fell by as much as 2% to trade at USD95.36 a barrel, the lowest since December 20, 2011.Oil prices extended sharp losses from Friday’s session, as market sentiment was rattled after Socialist challenger Francois Hollande defeated French President Nicolas Sarkozy and pro-bailout Greek political parties took a drubbing according to exit polls in from Sunday's parliamentary elections.The weekend election results triggered fresh uncertainty over Europe's ability to tackle its debt crisis. Hollande has recently called for a re-negotiation of Europe’s fiscal compact and its tough budget rules, while no political party won enough votes to form a government in Greece, prompting speculation the debt strapped country could reject its newly signed aid package.
Crude oil futures came under heavy selling pressure during European morning trade on Monday, as investors cut their exposure to riskier assets amid concerns over the impact of weekend elections in France and Greece on the euro zone’s ongoing debt crisis.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD97.60 a barrel during European morning trade, slumping 0.9%.It earlier fell by as much as 2% to trade at USD95.36 a barrel, the lowest since December 20, 2011.Oil prices extended sharp losses from Friday’s session, as market sentiment was rattled after Socialist challenger Francois Hollande defeated French President Nicolas Sarkozy and pro-bailout Greek political parties took a drubbing according to exit polls in from Sunday's parliamentary elections.The weekend election results triggered fresh uncertainty over Europe's ability to tackle its debt crisis. Hollande has recently called for a re-negotiation of Europe’s fiscal compact and its tough budget rules, while no political party won enough votes to form a government in Greece, prompting speculation the debt strapped country could reject its newly signed aid package.
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