Oil Hits a Six Month Low as the ECB Freezes Some Lending to Greek Banks

“Oil traded near its lowest settlement in six months as the European Central Bank suspended lending to some Greek institutions, fanning concern that the region’s debt crisis will hurt fuel demand.

West Texas Intermediate pared an advance of as much as 1 percent, and Brent traded below $110 for a barrel. The Frankfurt-based ECB said yesterday it will push the responsibility for lending to some Greek financial institutions onto the country’s central bank until they have sufficiently boosted their capital. Oil had gained as Enbridge Inc. (ENB) and Enterprise Products Partners LP (EPD) prepared to reverse flows on their Seaway pipeline, relieving a supply build-up at the main U.S. storage site in Cushing, Oklahoma.”

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