Oil prices fall further over global concerns

| June 27, 2011 | 0 Comments

Oil prices have fallen further as investors continue to worry about the weak US recovery and Greece’s debt woes.

Today, Brent crude for August delivery fell $2.95 to $102.72 a barrel, while US light, sweet crude dropped $1.13 cents to $90.14 a barrel.

The US economy continues to struggle amid stubbornly high unemployment and a depressed housing market, leading to a slowdown in growth.

Meanwhile, it has been agreed that Greece will receive a second bailout package as the country continues to crumble under a mountain of debt.

Last May, Greece was the recipient of a €110 billion loan and the fifth instalment of this loan is due next month – providing the Greek parliament approves the latest austerity measures, which will include more spending cuts and tax hikes.

The country needs this money by mid-July or it will default on its loan payments.

In the meantime, oil prices continue to slide after the decision by the International Energy Agency’s to tap emergency reserves.

Last week, the Agency said it will release two million barrels of oil a day over 30 days – in order to replace lost production from Libya.

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