FX.co ★ European oil prices dropped to $100 a barrel

On April 15, European Brent Crude futures prices dropped more than $1.5. Now it is trading below $101 per barrel. Meanwhile, price of oil which will be shipped in October-December 2013 is less than $100, according to ICE charts.
European oil futures (CLK13) have not been traded below $100 since July 2012. Prices of Russia’s oil Urals are linked to Brent on the global market. Meanwhile, US WTI has been trading below $100 per barrel for about a year.
Investors sell oil futures amid China’s slowdown. According to official data revealed on April 15, China’s Gross Domestic Product grew 7.7% in Q1, compared to a year ago. According to Bloomberg, economists forecast the economic growth will be 8%. In the fourth quarter 2012 China’s GDP was up 7.9%.
China’s news has led to sell-offs on the Asian markets. Thus, local stock indices dropped 1.52% in Hong Kong and 1.21% in Tokyo. At the same time slowdown of the world’s second largest economy could not prevent gold prices from falling; it plunged to $1.426 per troy ounce. It is the lowest level since April 2011.
The price of $100 per barrel is crucial for Russia’s budget which is based on Urals’ price for $97. Average annual price of Urals was $105 per barrel, in mid-April Ministry of Economic Development said. In March 2013, average monthly price of Urals was $106.67.