Crude oil futures dropped to their lowest price in one week of trading sessions after the president of the European Central Bank indicated the institution he leads will not drive purchases of government bonds to close the sovereign debt scourge, Bloomberg reports.
After Mario Draghi noted the program to purchase bonds is neither eternal nor infinite, crude oil futures slipped 2.2 percent. That prompted the belief that the ECB will not be purchasing the debt of hobbled nations.
"The market hit the skids once Draghi spoke," chief market strategist Bill O’Grady with Confluence Investment Management in St. Louis told Bloomberg. "Everything is on a knife's edge. If we wake up tomorrow to an agreement at the European summit and calming words from the ECB, oil could be up a couple of dollars."
At 12:08 p.m. on Thursday, crude oil futures fell 1.37 percent, a $1.50 loss to $108.03 per barrel.
The Associated Press reports Draghi's spoken word also pulled down stock markets and bank shares. The president's suggestion arrived after the ECB announced it will reduce interest rates by one quarter of one percent.
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