Oil drops sharply on Greek debt fears

Friday 17 June 2011 18.14
Oil prices - Franco-German meeting fails to ease concerns
Oil prices - Franco-German meeting fails to ease concerns

World oil prices fell this evening on the back of widespread concern over the Greek debt crisis.

US crude dropped $2.25 to $92.70 a barrel, coming off an early low of $92.12 which was the lowest level since late February. Brent North Sea crude shed $1.18 to $112.84.

Tensions were rising over Greece as German Chancellor Angela Merkel and French President Nicolas Sarkozy made a joint call earlier in the day for a new rescue package to be agreed upon as quickly as possible.

Crude markets were rattled earlier in the week by the failure of euro zone finance ministers to reach an deal on a second bail-out package aimed at averting a Greek debt default, which could plunge financial markets into crisis.