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Wednesday, Sep 5, 2012 4:45 PM UTC

Oil prices slip ahead of key European bank meeting

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Topics: From the Wires,

The price of oil fell slightly as the market awaits the latest move by Europe’s central bank to ease the debt crisis that has hamstrung the region’s economy.

Benchmark oil slipped 4 cents to $95.26 per barrel in New York. Brent crude, which is used to price international varieties of oil, fell 56 cents to $113.62 per barrel in London.

Weak manufacturing reports earlier in the week from China and the U.S., as well as Europe’s dire economic picture, weighed on trader sentiment on Wednesday. But that was countered by hope for measures from central banks and governments to promote global economic growth, which could translate into more demand for energy products.

Traders are awaiting two key developments later this week.

The European Central Bank is expected to announce a bond-buying program Thursday to reduce high borrowing costs in Spain and Italy. The program is designed to help stabilize the region’s financial crisis and promote growth.

Analysts say oil prices likely will fall without additional aid for the European economy because that would heighten concerns about a Europe-wide recession, Tradition Energy oil analyst Gene McGillian said.

He speculated that the price could drop into the mid-$80 per barrel range. Oil’s low for the year was $77.69 per barrel in late June.

Traders also are awaiting the U.S. nonfarm jobs report, which is due out Friday. It should offer fresh clues about where the economy is headed.

Meanwhile, average gas prices were unchanged overnight at $3.824 per gallon, according to AAA, Wright Express and the Oil Price Information Service.

In other futures trading in New York:

— Heating oil fell 3 cents to $3.12 per gallon.

— Wholesale gasoline was unchanged at $2.96 per gallon.

— Natural gas fell 5 cents to $2.81 per 1,000 cubic feet.

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Gripping photos: The people of the Turkey protests (slideshow)

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  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

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