oil dips below 120 spain downgraded
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Oil dips below $120, Spain downgraded

Arab Today, arab today

Arab Today, arab today Oil dips below $120, Spain downgraded

Abu Dhabi - Arabstoday

Oil prices dipped below $120 a barrel on Friday on renewed fears about the state of the debt-ravaged eurozone economies following a downgrade of Spain’s credit rating. Traders and investors took a more cautious stance after Standard & Poor’s reduced its credit rating on Spain by two notches to BBB+, citing expectations that the government’s finances will deteriorate even more than previously thought due to a shrinking economy and an ailing banking sector. S&P also put a negative outlook on the credit and said Madrid’s situation could deteriorate further unless ambitious measures were taken at the European level. Brent crude was down 42 cents to $119.50 a barrel by 0818 GMT, after rising in the past two sessions. U.S. crude oil slipped 39 cents to $104.16 a barrel. “The cut by S&P was the main reason for the price fall overnight, but we also saw strong gains yesterday with oil rising back above $120 a barrel despite over-supply and signs that tensions over Iran are easing,” said Carsten Fritsch, an energy analyst at Commerzbank in Frankfurt. “Today’s decline is not a big surprise given this backdrop.” Filip Petersson, a commodity strategist at SEB, agreed. “The general market sentiment is a bit bearish this morning. The direction in markets that offers the least resistance is down,” he said, noting that most markets were down about half a percent in early trade. “We shouldn’t expect much of a turn in market sentiment until we get the U.S. Q1 GDP numbers this afternoon,” he added. Preliminary estimates forecast U.S. first quarter GDP growing by 2.5 percent, slower than the 3 percent achieved in the fourth quarter of 2011. It is likely to be sentiment rather than fundamentals that drives prices today, with markets also closely eyeing Italy’s bond auction. The S&P downgrade has pushed Spanish 10-year bond yields above 6 percent. Italy is coming to the market with a range of maturities. “We saw yesterday that when market sentiment improves, the impact on prices is quite significant - so depending on the outcome of the bond auction and the U.S. GDP, this will set the tone for oil prices,” said Fritsch. However, further out he sees the risk remaining to the downside, citing reports from Libya that it will exceed pre-war oil production levels by mid-2012. “That will just add to the physical over-supply and should weigh on prices if the support from financial markets fades,” he said.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dips below 120 spain downgraded oil dips below 120 spain downgraded

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dips below 120 spain downgraded oil dips below 120 spain downgraded

 



GMT 12:48 2016 Sunday ,27 November

Cilic, Dodig push Croatia to brink of Davis Cup

GMT 05:24 2017 Thursday ,28 December

Erdogan says 'terrorist' Assad cannot be part of Syria

GMT 12:59 2016 Saturday ,05 November

WB welcomes economic reforms in Egypt

GMT 18:40 2016 Saturday ,05 November

Egyptian GDRs in London down

GMT 10:57 2017 Wednesday ,06 December

Peru striker Guerrero has doping ban extended

GMT 17:51 2017 Tuesday ,07 March

Trump Signs New Travel Ban on Six Muslim Countries

GMT 10:30 2017 Wednesday ,06 September

Saudi Information Ministry praises media role during Hajj

GMT 15:29 2017 Tuesday ,24 January

Mind games really do help your brain

GMT 06:55 2015 Thursday ,01 October

Boston Red Sox beat Yankees

GMT 08:17 2017 Monday ,28 August

Bahrain celebrates World Humanitarian Day 2017

GMT 02:07 2017 Tuesday ,28 February

Opposition seeks Russian support at Syria talks
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday