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Oil falls more than 2 percent on Europe concerns

Oil falls more than 2 percent on Europe concerns

Oil dropped more than 2 percent Monday on growing concerns about Europe's ability to solve its credit crisis.
Benchmark crude lost $2.31 at $85.65 per barrel in New York by midday while Brent crude slipped $2.47 to $109.75 in London.
The drop mirrored a broad decline in stock markets. The Dow Jones industrial average, the Standard & Poor's 500 and the Nasdaq were all down.
The dollar also rose against other major currencies, including the euro. That tends to push down oil prices, because oil is priced in U.S. currency and a rising dollar makes crude more expensive for investors with foreign money.
Oil has been falling since Friday, when European leaders delayed more emergency funds to Greece. If the Greek government defaults, it could destabilize the economies of other countries as well.
Greece's finance minister said Monday that his country will try to avoid international "blackmail and humiliation" by speeding up reforms and civil-service staff cuts.
Analyst Stephen Schork said energy traders are looking for greater assurances that the eurozone leaders, especially Germany, remain committed to bankrolling aid programs for weaker members.
"The northern European countries are tired of paying for their neighbors on the Mediterranean," he said. "You need some sort of assurance that the Germans will play ball."
In other commodities trading, heating oil gave up 6.45 cents, more than 2 percent, to $2.9444 per gallon and gasoline futures lost 7 cents, about 2.6 percent, at $2.702 per gallon. Natural gas was virtually unchanged at $3.814 per 1,000 cubic feet.


Updated : 2021-10-21 00:49 GMT+08:00