U.S. crude oil price plunged nearly 4 percent on Thursday after a strong rally on the day before, breaking 100-dollar mark per barrel as fears about the European debt situation lingered.
Light, sweet crude for January delivery plunged 3.77 dollars, or 3.67 percent, to settle at 98.82 dollars a barrel on the New York Mercantile Exchange, snapping all the gains on Wednesday.
In London, Brent crude for December delivery also tumbled 3.66 dollars, or 3.27 percent to close at 108.22 dollars a barrel.
Spanish bond yields hit their highest level of 6.98 percent in all the euro era. This bothered the markets because Greece and Portugal found it impossible to get funds through the market channel after their bond yields hit similar levels.
The risks of European debt contagion remained high. And the fact that even the financing cost for eurozone powerhouses of France and Germany was rising added to investor's concerns.
The selling signals were strong on Thursday. Many investors chose to book profits after Wednesday's rally.
The spread between U.S. WTI and the Brent narrowed to 9.4 dollars, sharply down from the record high of 28.10 dollars on Oct. 14.
U.S. economic data came in mixed. The initial jobless claims last week dropped to the lowest level in seven months, offering more signs of an improving job market. But the expanding pace of manufacturing in the U.S. Mid-Atlantic region slowed more than expected in November after a great increase in October, reflecting the struggling economic recovery.
Light, sweet crude for January delivery plunged 3.77 dollars, or 3.67 percent, to settle at 98.82 dollars a barrel on the New York Mercantile Exchange, snapping all the gains on Wednesday.
In London, Brent crude for December delivery also tumbled 3.66 dollars, or 3.27 percent to close at 108.22 dollars a barrel.
Spanish bond yields hit their highest level of 6.98 percent in all the euro era. This bothered the markets because Greece and Portugal found it impossible to get funds through the market channel after their bond yields hit similar levels.
The risks of European debt contagion remained high. And the fact that even the financing cost for eurozone powerhouses of France and Germany was rising added to investor's concerns.
The selling signals were strong on Thursday. Many investors chose to book profits after Wednesday's rally.
The spread between U.S. WTI and the Brent narrowed to 9.4 dollars, sharply down from the record high of 28.10 dollars on Oct. 14.
U.S. economic data came in mixed. The initial jobless claims last week dropped to the lowest level in seven months, offering more signs of an improving job market. But the expanding pace of manufacturing in the U.S. Mid-Atlantic region slowed more than expected in November after a great increase in October, reflecting the struggling economic recovery.
