Oil Falls Below $90
Oil briefly falls below $90, erasing all 2012 gains, as inventories rise in the US, and EuroZone fears over Greece weigh heavily on the price of oil.
US inventories of West Texas Intermediate (WTI) rose to 382.5 million barrels of oil, putting downward pressure on oil prices due to the oversupply. Crude oil production also reached a new peak of 6.24 million barrels per day – the highest level since 1999.
This happened on a day when Greece dominated the international financial news headlines as European Union nations examine plans and risks to a Greek exit from the European Union. This would also come with a major default on Greece bonds – largely held by EU banks. This would be disastrous for region and world as a whole, certainly triggering a worldwide recession.
Austerity plans discussed at the current EU summit today failed to stabilize the Euro.
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