OIL DECLINED for the first time in seven days as a surge in the European Central Bank’s balance sheet to a record highlighted the growing risks of the region’s debt crisis.
Oil also decreased on reduced concern that Iran will block the Strait of Hormuz.
Crude oil for February delivery declined $1.68, or 1.7 per cent, to $99.66 a barrel at 11:48am on the New York Mercantile Exchange.
Earlier, prices touched $99.11 a barrel. Futures have climbed 9.1 per cent this year, extending last year’s advance of 15 per cent. Brent oil for February settlement fell $1.87, or 1.7 per cent, to $107.40 a barrel on the London-based ICE Futures Europe exchange.
About 15.5 million barrels of oil a day, or a sixth of global consumption, pass through the Strait of Hormuz between Iran and Oman at the mouth of the Persian Gulf, according to the US Energy Department.
Iran’s navy started a 10-day exercise east of the passage that involved the use of submarines, ground-to-sea missile systems and torpedoes, Press TV said last week. – (Bloomberg)
