July Nymex WTI crude prices are trading in negative territory Wednesday, extending their losses from the previous session, pressured by risk aversion. Prices had rallied to levels of around $92.17 a barrel Tuesday amid increasing optimism that Greece could remain in the eurozone. Hopes of a Chinese stimulus package had also helped underpin prices. A downgrade of Spain’s credit rating then sent WTI prices into freefall, with the market plunging from session highs of $92.17 to lows of $90.25. Egan-Jones Ratings cut Spain’s credit rating for the third time in less than a month, which in turn sent the euro sharply lower on rekindled fears of a spreading debt crisis within the eurozone. The weak euro put immense pressure on WTI prices, which had previously tentatively recovered from oversold levels. Prices in Asia this morning edged back to around $90.92 a barrel before a risk aversion theme saw prices extend lower to lows of $90.16 a barrel. July Nymex WTI crude is currently trading $90.17 a barrel, down 59 cents from the NY close.
EasyForexNews Research Team