Oil fell for a third day after Greek Prime Minister George Papandreou pledge to hold a referendum raised the prospect of the failure of Europe’s bailout plan.
Futures dropped as much as 4.3 percent after decision to call a vote on its five-day-old bailout sent equities and the euro lower. You are seeing reduction in risk across the board because of concerns about what will happen in Europe.”
Crude oil for December delivery declined $2.71, or 2.9 percent, to $108.48 a barrel . Futures climbed 18 percent in October, the biggest gain since May 2009.
Brent oil for December settlement dropped $2.46, or 2.2 percent, to $107.10 a barrel on the London-based ICE Futures Europe exchange.
Papandreou’s referendum risks pushing Greece into default if voters reject the plan. An opinion poll published Oct. 29 showed most Greeks believe the accord on a new bailout package and a debt writedown is negative.
A rejection of the aid plan will increase the risk of a forced and disorderly sovereign default and raises the chance of Greece leaving the euro, WorldWatch said in a statement today.
The euro dropped as much as 1.8 percent to $1.3609, the lowest level since
Oct. 12. A weaker euro and stronger dollar reduce the appeal of raw materials as an investment.
The Greek action and the market reaction underscore the instability of the euro.
The market got overenthusiastic over the agreement last week. The party’s over and now we have to deal with the hangover.
Futures dropped as much as 4.3 percent after decision to call a vote on its five-day-old bailout sent equities and the euro lower. You are seeing reduction in risk across the board because of concerns about what will happen in Europe.”
Crude oil for December delivery declined $2.71, or 2.9 percent, to $108.48 a barrel . Futures climbed 18 percent in October, the biggest gain since May 2009.
Brent oil for December settlement dropped $2.46, or 2.2 percent, to $107.10 a barrel on the London-based ICE Futures Europe exchange.
Papandreou’s referendum risks pushing Greece into default if voters reject the plan. An opinion poll published Oct. 29 showed most Greeks believe the accord on a new bailout package and a debt writedown is negative.
A rejection of the aid plan will increase the risk of a forced and disorderly sovereign default and raises the chance of Greece leaving the euro, WorldWatch said in a statement today.
The euro dropped as much as 1.8 percent to $1.3609, the lowest level since
Oct. 12. A weaker euro and stronger dollar reduce the appeal of raw materials as an investment.
The Greek action and the market reaction underscore the instability of the euro.
The market got overenthusiastic over the agreement last week. The party’s over and now we have to deal with the hangover.
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