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Crude falls on Italian leadership uncertainty

Published 12/10/2012, 02:41 PM
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Investing.com - Crude oil futures fell in U.S. trading on Monday after investors sold in wake of Italian Prime Minister Mario Monti's surprise resignation announcement.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD85.64 a barrel on Monday, down 0.34%, off from a session high of USD86.78 and up from an earlier session low of USD85.35.

Oil prices slid on concerns a shakeup in Italy's leadership structure could alter the path of fiscal reform and cut into European economic activity, which would crimp demand for fuels and energy.

On Saturday, Monti announced that he will resign as soon as Italy passes a 2013 budget.

The announcement came after members of former Prime Minister Silvio Berlusconi’s party withdrew their support for Monti's caretaker government.

Earlier, the yield on 10-year Italian bonds jumped to 4.83% on Monday from 4.52% at the close of trading on Friday.

Brent, the European blend, rose on sentiments the Chinese economy may be gaining steam and will demand more energy to ramp up growth.

Chinese export and industrial production figures have painted a picture of an improving economy in recent sessions.

U.S. futures also dipped ahead of the Federal Reserve's monetary policy meeting later this week.

Talk that the U.S. central bank may ramp up its bond buying program to provide further stimulus to the economy prompted investors to sidestep oil.

Meanwhile on the ICE Futures Exchange, Brent oil futures for February delivery were up 0.09% at USD106.27 a barrel, up USD20.63 from its U.S. counterpart.







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