Germanys GDP numbers down along with crude oil prices

Crude oil prices tumbled on the charts today, falling back from their highest peaks in more than a week, as Germany’s economy continued to show signs of weakening. The strengthening cracks in the financial armor of Europe’s last remaining strong economy are a significant sign of worry for both the region and the crude oil price chart.

Futures of the fuel lost more than 1% today, as equity markets fell back after reports from Germanys announced that the nation’s economic standings worsened in the last quarter of the year. As a result of the report, the euro lost ground against the dollar, prompting a similar slide in global crude oil prices. Signs of trouble in the Spanish industrial sector also added to the ever-growing fear surrounding Europe’s fragile economic state.

Traders stepped away from crude oil, as the dismal conditions in Europe continued to place pressure on both the equity and commodity markets. A quick round of profit-taking ensured a drop in crude oil prices.

West Texas Intermediate futures lost $1.08 and settled at $101.44 per barrel in electronic trading on the New York Mercantile Exchange. Investments in the American benchmark rose yesterday on optimistic global economic cues. Futures are up almost 3% for the year so far.

The Brent commodity prices suffered less damage, sinking 34 cents to $112.94 per barrel on the ICE Futures Exchange in London.  The spread between the two benchmarks currently sits at $11.49 per barrel.

Recession-like behavior in Germany’s economy is a strong cause for alarm for the addled euro zone. The nation represents the last frontier in the region’s years-long march towards a financial collapse. With Germany’s gross domestic product figures sinking at a rapid rate, and Spain’s industrial output falling more than 7%, Europe’s sovereign debt issues continue to remain the primary obstacle in crude’s movement up the price charts.

By Chris Termeer