Crude sank in Asia today after Greek lawmakers approved a new austerity budget which the Government has vowed will secure the release of foreign aid.

New York’s main contract, light sweet crude for delivery in December, fell five cents to $86.02 a barrel and Brent North Sea crude for December delivery shed 34 cents to $109.06.

“European markets are not showing any positive signs of economic recovery as they struggle to fight the fires burning in Greece and Spain currently,” IG Markets said in a report.

Greece’s budget paves the way for the European Union, International Monetary Fund and the European Central Bank to unlock a €31.5 billion ($40 billion) tranche of bailout funds for Athens.

Greece’s unrelenting debt problems will top the agenda today when Euro Zone finance ministers discuss whether Athens has met all the conditions set by its international creditors to provide funds so it can stay afloat.

Without fresh funds, Greece risks default on November 16, when the Government must repay a three-month treasury bill worth €five billion.

In Spain, the completion of a bond-selling programme on Thursday all but ruled out a much-anticipated Euro Zone bailout for Europe’s fourth largest economy this year.

(This article was published on November 12, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.