Crude oil prices were barreling toward their steepest monthly losses since 2009 on Thursday, tugged down by conjecture that reduced demand for the energy commodity could be one consequence of the widening debt crisis in the euro zone, Bloomberg reports.
The pace of inflation in May in Europe slowed down more than projections issued by economists, settling at its lowest in more than 12 months amid concerns about an expanding economic slump.
"The market seems fixed on the debt worries in Southern Europe and potential repercussions from the Greek situation spreading," analyst Michael Poulsen with Global Risk Management in Denmark told Bloomberg. "In the short term we'll see more market jitters as participants are looking at the headlines, but I'm fairly optimistic we won't see a break-up in the euro construction any time soon."
At 8:34 a.m. on Thursday, crude oil futures were even at $103.47 per barrel.
Dow Jones Newswires reports concerns about the integrity of Greece and Spain were weighing on the energy commodity as fears grew about leaders' inability and unwillingness to confront the peril posed by the debt scourge.