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The price of oil fell for the fifth time in six days due to disagreements regarding the European debt crisis and weaker-than-expected data on Germany.
Prices fell by 1.8%, after German Chancellor Angela Merkel and French President Francois Hollande has agreed to schedule the introduction of joint supervision of banks in Europe at a meeting on September 22. At the same time the German business confidence unexpectedly fell to the lowest level in more than two years, thus causing a decline in the euro.
News from Europe cause a stronger dollar, which puts pressure on the expected demand for oil. It makes people think that even $ 90 oil is too expensive.
In his speech, German Chancellor Angela Merkel has rejected the appeal of French President Francois Hollande to intensify supervision over the banking alliance, "the sooner the better." Impasse in solving this problem is to delay addressing key issues for the euro zone.
Prices also declined amid falling U.S. stocks.
Also note that last week the Department of Energy reported that gasoline demand continued to decline during the seven days that ended on 14 September, by 0.7% to 8.63 million barrels a day, while still achieving the weakest level since July 13 .
Oil also fell after the data is the U.S. Fed Beige Book showed that China manufacturers and retailers are less optimistic about sales than it was three months ago.
October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $91,46 per barrel.
November futures price of North Sea Brent crude oil mix is now $109,08 a barrel on the ICE Futures Europe Exchange.
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