Friday, December 9, 2011

EU summit treaty failed

Today crude oil prices dipped after Europe's leaders failed to agree a new treaty to tackle the debt crisis. Brent North Sea crude for delivery in January shed 32 cents to $107.79 a barrel. New York's main contract, light sweet crude for January, dipped 23 cents to $98.11 a barrel. The market was very nervous before the summit and the fear is that Brent crude oil prices will continue to fall towards the $100 a barrel mark, prompted by the lack of stability and the knock-on economic effect of the confusion across Europe.

However, 23 EU nations - including the 17 that use the euro - agreed to sign an accord to make greater fiscal discipline legally binding. The 17 euro members are now negotiating to form into a separate euro group where strict controls over budgets will be devolved to Brussels.

European Union president Herman Van Rompuy said euro area and other member states will aim to make available additional resources of up to 200 billion euro to the International Monetary Fund. The European Stability Mechanism (ESM) would come into force earlier than first mooted, in July 2012.

Today, RSS-4 grade rubber declined and closed at Rs. 201.50 a kg at Kottayam. RSS-3 grade increased to Rs 183.30 a kg at Bangkok. At Tokyo Commodity Exchange futures prices for December delivery declined and closed at ¥260.3 a kg, for January delivery closed at ¥267.5 a kg, February closed at  ¥272.6 and ¥274.8 a kg for March 2012 contract.

Read lot more in Rubber4U – 15th December 2011 issue

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