Crude oil retreats in Asian trading

12 February 2010

Written by Neil Brunskill

Crude oil prices moved lower on the New York Mercantile Exchange this morning (February 12th), slipping after breaching the $75 (£47.75) mark yesterday.

However, the commodity retreated back below this benchmark price this morning as European markets opened, with traders becoming increasingly anxious about the failure of EU leaders to respond firmly to Greece's sovereign debt crisis.

Heating oil prices also dipped during trading this morning.

"There's a lot of scepticism in the market about the EU summit, because there's no definitive plan - only political and moral support - so that's boosting the dollar and pressuring oil," said Michelle Kwek, an analyst at Informa Global Markets in Singapore, speaking to Reuters.

Germany's chancellor Angela Merkel has been at the vanguard of opposition to a rescue package, preferring instead to pressure the Greek government to push through comprehensive fiscal restructuring proposals.

France, which boasts the second largest economy in the EU after Germany, has also been vocal in its opposition to a relief plan.

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