Crude oil prices declined After yesterday’s German auction and today’s French auction markets turned pessimistic and the Euro slipped below $1.28, where France’s borrowing cost surged again, while demand for the French securities was weak, which raised fears in the market that France, the second largest economy in the euro-area region, could lose its AAA credit rating soon.
Fears started growing this week that euro zone leaders might fail to find a comprehensive solution to the debt crisis which could drag the region into a deep recession and infect the global economy especially after Greece warned it might exit the euro zone if the country won’t get more financing.
Now, eyes will be spotted on this year, and the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.
The outlook for crude oil prices remains generally to the downside, as persistent fears from the EU debt crisis and signs global growth is slowing are likely to keep crude oil prices under pressure, where traders will also continue to monitor the developments from the 17-bloc euro nation and the European leaders’ latest moves to contain the debt crisis.
Originally posted here
