Oil Price Update-Futures Drop Amidst Fears of Weak US Economy, Greece’s Debt Crisis

Oil futures dropped on fears of a sluggish US economy and renewed concerns over Greece’s sovereign debt issues. WTI crude futures for June delivery dropped by 1.03 percent to USD $ 98.620 a barrel. Brent crude futures declined by 0.47 percent to USD $ 113.30 a barrel.

US President Barrack Obama expressed his fears in an interview for CBS’s “Face The Nation” about the US economy coming under a severe recession unless the debt ceiling was raised. Such an announcement coming from the president of the world’s largest oil consumer played on investor’s emotions, causing the price of oil futures to drop in anticipation of a possible global recession. Also, there is a growing understanding that Greece’s debt crisis might worsen, dragging Europe’s economic growth downwards.