Posted on 25 Sep 2012
Crude oil prices fell Monday on concerns about the eurozone debt crisis and weakening global economic growth despite a recent round of central bank stimulus.
New York's benchmark contract, West Texas Intermediate crude for November, fell 96 cents from Friday to finish at $91.93 a barrel.
Brent North Sea crude for delivery in November shed $1.61, settling at $109.81 a barrel in London trade.
"Markets seem to have discounted QE3 already and we have to wonder how much longer central banks can keep pulling from the bag of tricks," analysts at BMO Capital Markets said of the US Federal Reserve's new bond-buying program.
A drop in German business confidence on the Ifo index Monday to its lowest level in two years weighed on market sentiment on both sides of the Atlantic.
The renewed concerns that Europe is sliding deeper into recession weakened the euro against the dollar.
A stronger dollar tends to reduce demand for dollar-priced crude oil, leading prices lower.
Tensions between Germany and France, Europe's two biggest economies, over a plan to create a eurozone banking union to help ease the eurozone debt crisis also stoked worries about political will, said Bart Melek at TD Securities.
German Chancellor Angela Merkel and French President Francois Hollande clashed Saturday over plans to allow the bloc's rescue funds to lend directly to banks instead of through member countries, which would add to their debt woes.
"Last week, we saw crude do well, because there were hopes because of a bit of a solution to the euro debt issues," Melek said.
"But we have now a disagreement coming between Chancellor Merkel and the French president, Francois Hollande, over close integration of the European banking system," Melek said.
