NEW YORK: Recession worries pushed the price of Brent oil briefly back under $100 on Wednesday, and the euro moved closer to parity with the dollar.
European stocks rebounded thanks to lower bond yields and bargain hunting, while US stocks also advanced, climbing after Federal Reserve minutes maintained a tough line on inflation.
Europe’s benchmark crude oil contract, Brent North Sea, fell briefly under $100 per barrel in afternoon deals, following its US counterpart WTI, which slumped below the symbolic level on Tuesday.
Citi analysts have forecast that Brent could strike $65 later this year in the event of a prolonged worldwide economic downturn.
Meanwhile, the euro hit a fresh 20-year low point under $1.02 — the European single currency fast closing in on parity with the dollar as traders eye recession for the eurozone and the ECB’s slower moves to raise interest rates than the US Fed.
