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Benchmark crude oil prices will likely continue falling this week, possibly testing $90 a barrel, after U.S. employment data missed forecasts and election results in France and Greece showed voters rejecting German-led austerity measures, CNBC's weekly survey of market sentiment showed.
But expectations that the weaker economic outlook may build the case for further stimulus from the Federal Reserve or the European Central Bank could limit any move lower, respondents said.
Kirk Howell, Chief Operating Officer, of SunGard's energy and commodities business SunGard Kiodex, said prices could drop by another $7-10/bbl over the next few weeks as "economic data out over the last week has further confirmed we likely have not seen the worst of the situation in Europe and the recovery in the U.S. is tepid at best."
U.S. crude futures dropped more than $3 a barrel and Brent crude also fell more than $2.50 a barrel on Sunday after Greek voters mauled pro-bailout parties while French voters ousted incumbent President Nicolas Sarkozy , a key architect of bailouts for indebted countries and an advocate of austerity measures.
On the New York Mercantile Exchange, crude for June delivery fell to $95.42, down $3.07, or 3.14 percent as of 2230 GMT. Brent crude lost $2.73 a barrel, or 2.41 percent, at $110.45.
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