LONDON: Oil prices back away from multi-month lows, but remained under intense pressure on stubborn concerns over the eurozone debt crisis and signs of weak energy demand in the US.
By 1620 GMT, ICE Brent for June delivery, which is expiring at the close, was down 64 cents at $111.60 a barrel. It hit an early low of $110.41 and had risen to $112.10 in volatile trading.
US June crude was down 86 cents at $93.12, having fallen to $91.81 early, the lowest intraday since Nov. 3, and risen as high as $94.16.
Brent’s premium against US crude widened slightly to around $18.50, from $18.26 on Tuesday.
The euro struck a four-month low point at $1.2681 on news Greece will go to the polls again after talks to form a coalition failed, stoking fears it will exit the eurozone.
A stronger US currency makes dollar-denominated crude more expensive for buyers using the euro, denting demand for oil and pulling the market lower.
“Oil prices remained under pressure as euro area politics continued to be in focus,” Barclays analysts said in a note to clients.
“Speculation that Greece may exit the single currency caused European stocks, peripheral euro area bonds, the euro and commodities to sell off.”
