31st July 2012
The price of Brent crude dropped to $106 a barrel today (July 31st), as traders became concerned that new stimulus packages may not be enough to revive flagging economies on both sides of the Atlantic.
Despite news of lower production from the 12-member Organization of the Petroleum Exporting Countries (OPEC) and a fall in US crude stockpiles, the overwhelming global economic uncertainty had the biggest impact on prices, Reuters reports.
Brent crude recovered three cents to $106.17 per barrel by this morning after having dropped to a low of $105.78 earlier in the session, while US crude gained 17 cents to $89.95 after trading at a low of $89.51.
Analysts state that despite OPEC supply falling by 450,000 barrels per day in July, the market is well placed to deal with any immediate disruptions in supply.
Brent had increased by eight per cent during this month - the biggest gain since February.
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