As the euro zones debt crisis drags on, many are concerning themselves with the future on the euro zone. But to many, Monday was quite possibly the first sighting of the light at the end of the tunnel. Oil prices dropped on Monday, as it was a relief to many that the rescue package could turn out well for the euro zone. The fear of Italy being the next country going “under the knife” due to the economic crisis in Europe is prominent among Spanish investors. On Saturday, the euro zone finance ministers got together and settled on lending Spain 100 billion euros, or $125 billion, to combat the harsh effects the crisis has had on banks.
With the rising concerns of the two leading oil-consuming nations, those being the United States and China economic outlook. Top OPEC producer Saudi Arabia called for an increase in the cartel’s output target, despite the recent fall in oil prices, further adding to selling pressure in oil markets. Crude prices received support from data showing China’s crude imports rose to a record, about 6 million barrels per day in May, up 18.2 percent from a year ago.
The oil market continues to throw things at us every day. If it’s not fuel supply, it’s fueling cost. Hopefully things will settle down and we will have lower diesel fuel prices and gas prices as we continue to move through the summer time.
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