The price of oil dropped as the economic conditions in the U.S. and Europe worsened due to low levels of consumer confidence on both sides of the Atlantic, The Street reported.
The drop has been partially attributed to the exit of Juergen Stark from the European Central Bank, as the executive board member cited personal reasons before stepping down from his leadership role.
Stark's resignation came at a time when the bank is in a vulnerable position concerning the ongoing debt crisis and the poor fiscal situation that many of the European countries are in, according to The Street.
The demand for oil may drop in the near future, because of these developments and a world economic slowdown that has been projected, The Wall Street Journal reported.
"For now, we see a relatively controlled slowdown on the [oil] demand and as long as supply continues to disappoint to a similar extent, prices will stay where they are for now," Andy Sommer, an oil analyst at EGL, told the news source.
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