Oil prices extended losses in Asian trade today, as French and Greek election results stoked investor concerns over the Euro Zone debt crisis, while disappointing US economic data also weighed.

New York’s main contract, West Texas Intermediate crude for delivery in June, stayed below the psychological $100 threshold, falling $1.92 to $96.57 a barrel in morning trade.

Brent North Sea crude for June shed $1.48 to $111.70.

“Oil has gone down sharply because the election results have raised concerns about whether the Euro Zone can beat the debt crisis,” said Mr Nick Trevethan, senior commodities strategist at ANZ Research.

“There is a worry about a rejection of austerity and people are also worried about a Euro Zone recession,” he added.

Mr Trevethan said poor US economic data released last week added to the gloom in the market.

French and Greek voters showed their lack of enthusiasm for belt-tightening by flocking to candidates and political parties, who have called for an easing of austerity measures during week-end elections, sparking concerns that the Euro Zone debt crisis might resurface.

In France, the President-elect, Mr Francois Hollande, warned fellow European leaders that he would push ahead with his vow to refocus EU fiscal efforts from austerity to growth. Mr Hollande defeated incumbent, Mr Nicolas Sarkozy.

Crude futures were also weighed down mostly due to disappointing US economic data released last week, analysts said.

Official non-farm payroll data released on Friday showed the world’s biggest economy generated only 115,000 net new jobs last month, less than half the pace at the beginning of the year, although the unemployment rate dipped slightly to 8.1 per cent from 8.2 per cent.

Related Topics
comment COMMENT NOW