The price of oil ebbed and flowed on Tuesday in response to a credit service noting it is poised to slash the European bailout fund's credit rating of debt, according to Bloomberg.
Standard & Poor's indicated the European Financial Stability Facility is subject to having its top credit rating downgraded should any guarantor's own debt grades slashed, which offset the goodwill of optimism regarding efforts to solve the euro zone debt scourge. Germany and France, respectively the region's first- and second-biggest economies, might be subject to the S&P downgrade along with the additional euro zone nations – all of which hinges on what comes of the December 9 meeting.
"Both oil and the stock market are waiting for signs of a resolution to the European debt crisis," research director Kyle Cooper with IAF Advisors in Houston told Bloomberg. "The situation in Europe has been the primary driver for a while and we'll probably chop around until the European summit."
At 3:03 p.m. on Tuesday, crude oil futures gained 0.81 percent, an 89 cent rise to $110.70 per barrel.
UPI reports the Monday warning from Standard & Poor's was issued to nations that use the euro. The countries that have been most victimized by the debt scourge are Portugal, Ireland, Italy, Greece and Spain, also known as the PIIGS nations.
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