Crude Oil Prices Drop On Greece Default Risk
Crude Oil prices dropped Monday amid renewed uneasiness about Greek debt after the country closed its banks to control capital outflow.
Greece worries battled the market after 5-month reform-for-cash negotiations between Greece and international lenders collapsed without producing an agreement.
Banks and markets in Greece are closed until 6 July, after Prime Minister Alexis Tsipras called for a referendum on July 5 on whether or not to accept the stringent terms set by international creditors.
The move triggered a series of reactions starting with the Eurogroup rejecting Greece’s request for a loan extension. Without an agreement on 30 June, Greece was unlikely to pay a US$1.8-B loan installment to the International Monetary Fund (IMF).
The latest development triggered investors’ concerns that Greece is sliding toward defaulting on its government debt and worse, leaving the Eurozone.
The US benchmark, West Texas Intermediate (WTI) Crude Oil (USO) for Aug delivery moved down 1.3, to settle at 58.33 bbl on the New York Merc (NYMEX).
The global benchmark, Brent Crude Oil (OIL) for Aug delivery fell 1.25 to close at 62.01 bbl on the London ICE Future Exchange.
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