Economic woes in Europe´s periphery and the ensuing retreat in risk appetite undermined energy prices again yesterday, as Wall Street closed lower for a fifth session in a row for the first time in 2012.

Some reports are highlighting the fact that Spain´s Economics Minister refused to dismiss the possibility of a European rescue for his country, and the weakening in periphery bond prices that followed, as the main reason behind the weaker sentiment in the energy complex.

West Texas front-month futures yesterday declined 1.4%, to $101.02, the lowest close since Feb. 14th.

In particular, data showing a fall in Chinese crude imports in March, albeit from record highs in the previous month, were cited by some as being another one of the main factors behind the selling.

Investors also seem to have been put-off lately by the possibility that the Federal Reserve will hold-off from further stimulus and some recent weaker than expected macroeconomic data out of China.

Not to be lost sight of either, natural gas futures for the month of May dropped 3.6%, to $2.031 per million British thermal units on the New York Mercantile Exchange (NYMEX). That is the lowest price seen in almost a decade and is the result, in part, of reports of mild weather across the US.

Lastly, and acting as a backdrop, the International Monetary Fund said yesterday that it expects oil prices to decline this year and next on the back of a weak global economic outlook, with larger falls a possibility due to the sizeable threats to world growth.

AB

Related share prices