Oil prices limit losses on Franco-German moves

16th August 2011, Comments 0 comments

Oil prices fell Tuesday but heavy losses were curtailed after Germany and France came together to tackle the eurozone debt crisis.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in September, fell 42 cents to $87.46 a barrel, off losses of around one dollar earlier in the day.

Brent North Sea crude for September dipped 21 cents to $109.70.

President Nicolas Sarkozy of France and Germany's Chancellor Angela Merkel called Tuesday for the formation of a common government so as to help tame the eurozone debt crisis.

The body should be headed by current European Union president Herman Van Rompuy, Sarkozy said, as the leaders of the single currency bloc's two biggest economies said the 17 eurozone states should also adopt balanced budget laws by mid-2012 to stabilise their strained public finances.

Oil prices rose sharply on Monday, with New York closing up $2.50 as global stock markets rallied and the dollar weakened, stoking demand for dollar-priced commodities such as oil.

© 2011 AFP

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