Oil Market Summary for: 03/05/2010 to 07/05/2010
In a week of market turmoil resulting from Greece's fiscal crisis, oil went from an intraday high above $87 on Monday its highest point in more than a year and a half to plunge briefly below $75 on Friday.
The Greek crisis, exacerbated by a still-unexplained "glitch" in U.S. stock trading on Thursday that saw the Dow Jones Industrial Average plunge 9% in a matter of minutes before recovering, sent financial speculators scrambling for the sidelines, liquidating their long positions.
The benchmark West Texas Intermediate contract settled at $75.11 a barrel on Friday, its lowest point since February, compared to $86.15 a week earlier a decline of nearly 13%.
Friday's announcement of an unexpected increase in the unemployment rate to 9.9% in April from 9.7% in March cut short any hope of a rebound following the 3.6% drop in oil prices on Thursday amid the gyrations in the stock market.
U.S. government data on Wednesday showing that crude oil inventories had increased by 2.8 million barrels almost double expectations lent momentum to the price decline that began on Tuesday as unrest in Greece and uncertainty about its bailout raised fears of the crisis spreading to other Eurozone countries.