Oil prices decline on eurozone debt concerns

20:17, 19 September 2011

LONDON. September 19. KAZINFORM Oil prices have fallen in early trading as concerns persist about the impact of the debt crisis in the eurozone. It comes after a meeting of European Union finance ministers in Poland last week announced no new immediate measures to tackle the problem.

Brent crude was down 95 cents to $111.27 a barrel, while US light crude had lost $1.14 to $86.82, BBC News reports.

Oil analyst Jonathan Barratt of Commodity Broking Services said the eurozone concern was hitting demand.

"Look at what's happening in Europe. People are beginning to see that it is taking a lot longer than anticipated to resolve the issue," he said.

"Longer uncertainty means the demand outlook for oil remains weak."

On Sunday, Greek Prime Minister George Papandreou chaired cabinet crisis talks, a day after cancelling a trip to the US amid growing fears over the debt crisis in the country, eurozone's most indebted nation.

The talks focused on new austerity measures to enable Greece to secure the country's next bailout loan.

Without the next loan Greece will not be able to meet its debt payments next month.

To learn more go to www.bbc.co.uk

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