Crude Oil Drops Below $94 a Barrel

Crude oil took additional losses in trading yesterday, as investors continue to flee riskier assets due to negative euro-zone news. Fears that the political situation in Greece will result in new elections next month was the main reason for risk aversion in the marketplace. As a result, the price of oil fell over $2 a barrel during European trading, reaching $93.61, a new low for 2012. Turning to today, analysts are warning that the price of oil could fall further unless some form of stability returns to Europe. Investors are all but certain that Greece will need to hold a new election in June, which increases the chance that the country will eventually leave the euro-zone. That being said, should the German ZEW Economic Sentiment figure come in above expectations, risk taking could return to the marketplace which could help oil recoup some of its losses.

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