Oil prices fell for a second straight day today as a cut in interest rates by the European Central Bank and a drop in US jobless benefit claims failed to improve investors' appetite for risk.
Uneasiness pervaded the markets as EU leaders began to gather for a summit aimed at producing a credible solution to the debt crisis.
This evening, Brent crude was trading at $107.95 a barrel, down $1.58. US crude was down $1.78 at $98.71.
The ECB decision disheartened investors as the ECB president, Mario Draghi, said the bank did not consider cutting rates further and he remained cautious about further bond purchases, dashing hopes for more ECB help to quell the debt crisis.
As a result, the euro dropped against the dollar, a situation that discourages investors from buying dollar-denominated assets such as oil.
