Oil futures fell in New York after European Central Bank President Mario Draghi failed to give details of a plan designed to shore up the euro by curbing rising government borrowing costs in the region.
Futures tumbled as much as 1.6 percent after Draghi signaled at a press conference in Frankfurt that the ECB will join forces with governments to buy sovereign bonds in sufficient quantities to remove all doubts about the future of the euro. Draghi said last week he would do whatever it takes to protect the currency, stoking speculation he would outline plans following the central bank meeting today.
“Draghi’s walked us all the way up the hill and all the way back down again,” said Michael Hewson, an analyst at CMC Markets in London. “We’ll continue to see choppy trading but with a bias to the downside.”
Crude for September delivery fell as much as $1.40 to $87.51 a barrel on the New York Mercantile Exchange and was at $88.76 at 9:10 p.m. local time.