Oil falls after ECB says euro zone economy weak
The price of crude oil fell on Tuesday after European Central Bank head described the economic outlook of the 17 countries that use the euro as weak in the near term.
Benchmark crude for March delivery was down 34 cents to $95.52 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange.
Nymex floor trading was closed Monday for the Presidents Day holiday. The contract fell $1.45 to finish at $95.86 a barrel on the Nymex on Friday.
European Central Bank president Mario Draghi told European lawmakers on Monday that the economic outlook for euro nations remained weak at the start of 2013 but the bank expects "a gradual recovery later this year." The ECB forecasts the region's economy will shrink 0.3 per cent in 2013.
Political developments in two of the region's struggling economies have also heightened investor concerns.
In Spain, charges of bribery have put pressure on prime minister Mariano Rajoy to resign.
In Italy, polls favor Silvio Berlusconi in elections next week. Berlusconi, a former premier, has called for billions in tax rebates and amnesty for Italians who haven't paid them.
Brent crude, used to price many international varieties of oil, was down 19 cents to $117.47 a barrel on the ICE Futures exchange in London.
