Crude oil futures were dropping on Monday, one day after sanctions levied by the European Union kicked in against oil-rich Iran, according to Bloomberg.
The primary drivers of the downward drive include economic situations in Europe becoming more severe and the reduced pace of growth in China. The rally from this past Friday also is believed to have been overdone.
"Crude's strong movement last week was a bit too much too fast probably, so today we're seeing it a bit lower again," analyst Hannes Loacker with Raiffeisen Bank International in Vienna told the news source. "Headwinds from the euro zone" are poised to postpone the recovery of the energy commodity, Loacker told the news source.
At 9:30 a.m. on Monday, crude oil futures fell 1.36 percent, a $1.33 loss to $96.47 per barrel.
Euro-region manufacturing production fell in May, according to an index assembled by Markit Economics. Unemployment in the 17-nation region also increased to 11.1 percent, its highest rate in 17 years.
The Wall Street Journal reports the price of crude oil dropped amid preoccupations about development and growth in China, the globe's second-largest consumer of the energy commodity.
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