Investing.com - Crude oil futures fell below USD80-per-barrel during European morning trade on Monday, as fears over a slowdown in global growth and broad concerns over the ongoing sovereign debt crisis in the euro zone weighed on investor confidence. In London, Brent oil prices fell below USD91-a-barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD79.28 a barrel during European morning trade, shedding 0.6%.
It earlier fell by as much as 0.65% to trade at a session low of USD79.25 a barrel. Prices touched USD77.56 a barrel on Friday, the lowest since October 5.
Concerns over the health of the global economy intensified last week after data showed weak U.S. manufacturing activity, a shrinking Chinese factory sector and slowing business activity across the euro zone.
Oil traders often use manufacturing numbers as indicators for future fuel demand growth. A deeper slowdown in China and the U.S. would impair a global expansion that is already faltering because of the euro zone’s ongoing sovereign debt crisis.
Investors also remained cautious ahead of a European Union summit due to begin later in the week, amid hopes progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Reports said over the weekend that Greece’s Prime Minister Antonis Samaras and Finance Minister Vassilis Rapanos will not attend the summit due to health issues.
The debt-strapped country will reportedly present a plan at the summit that includes tax cuts and a request for more time to lower its debt levels.
Elsewhere, Spain's government was expected to make a formal request for aid for its banking sector later in the day, after reports on Thursday indicated that Madrid would need a rescue package of as much as EUR62 billion.
Losses were limited as oil drillers including Conoco Phillips and British Petroleum shut about 23% of output in the Gulf of Mexico as a precaution ahead of Tropical Storm Debby.
The U.S. National Hurricane Center said Friday that a low pressure system in the Gulf had a 70% chance of developing into a tropical cyclone over the next two days.
However, the storm shifted away from offshore energy installations yesterday, a National Hurricane Center advisory showed.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 20% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.7% to trade at 90.34 a barrel, with the spread between the Brent and crude contracts standing at USD11.06.
Prices fell to as low as USD88.49 a barrel on Friday, the lowest since December 20, 2010.
London-traded Brent prices are down nearly 29% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD79.28 a barrel during European morning trade, shedding 0.6%.
It earlier fell by as much as 0.65% to trade at a session low of USD79.25 a barrel. Prices touched USD77.56 a barrel on Friday, the lowest since October 5.
Concerns over the health of the global economy intensified last week after data showed weak U.S. manufacturing activity, a shrinking Chinese factory sector and slowing business activity across the euro zone.
Oil traders often use manufacturing numbers as indicators for future fuel demand growth. A deeper slowdown in China and the U.S. would impair a global expansion that is already faltering because of the euro zone’s ongoing sovereign debt crisis.
Investors also remained cautious ahead of a European Union summit due to begin later in the week, amid hopes progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Reports said over the weekend that Greece’s Prime Minister Antonis Samaras and Finance Minister Vassilis Rapanos will not attend the summit due to health issues.
The debt-strapped country will reportedly present a plan at the summit that includes tax cuts and a request for more time to lower its debt levels.
Elsewhere, Spain's government was expected to make a formal request for aid for its banking sector later in the day, after reports on Thursday indicated that Madrid would need a rescue package of as much as EUR62 billion.
Losses were limited as oil drillers including Conoco Phillips and British Petroleum shut about 23% of output in the Gulf of Mexico as a precaution ahead of Tropical Storm Debby.
The U.S. National Hurricane Center said Friday that a low pressure system in the Gulf had a 70% chance of developing into a tropical cyclone over the next two days.
However, the storm shifted away from offshore energy installations yesterday, a National Hurricane Center advisory showed.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 20% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.7% to trade at 90.34 a barrel, with the spread between the Brent and crude contracts standing at USD11.06.
Prices fell to as low as USD88.49 a barrel on Friday, the lowest since December 20, 2010.
London-traded Brent prices are down nearly 29% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.