A statement from the Bank of Greece warning of pending economic disaster and indications of strong oil demand sent Brent crude prices up nearly 2% on June 17.
Brent crude oil pricesclimbed 1.8%above the previous close to $64.90 per barrel early in the session on June 17. West Texas Intermediate, the US benchmark,rallied 1.6%to $60.94 per barrel.
The American Petroleum Institute indicated that US crude oil stockpiles dropped for the seventh straight week in a sign of strong demand. Federal ReserveChair Janet Yellen in May warned the US economy was stillfacing headwinds.
Crude oil prices have been relatively stable for the better part of a month amid signs that some of the oversupply was vanishing from a global economy still struggling to gain traction.
The Organization of Petroleum Exporting Countries (OPEC) last week said its members would keep production levels static despite concerns about a market already overrunning with crude oil. OPEC members said they expected demand would recover during the latter half of 2016.
Media reports from Libya said on June 16 production there is up about 60% to 500,000 barrels per day.
Also in the Middle East, UN Secretary-GeneralBan Ki-moon kicked off talks in Geneva aimed to resolving a simmering crisis in Yemen.
On the supply side, the Energy Information Administration (EIA) said in its latest drilling productivity report that output from the US shale basins behind the glut is expected to drop off starting in July.
In Europe, a failing Greek economy created waves across the continent at the height of the global economic crisis.
Meanwhile, the Bank of Greeceon July 17 warnedof a pending disaster should leaders fail to reach a financial agreement with European and international lenders. “A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability,” the bank warned in a statement.
In his annual report to the Parliament, Bank of Greece Governor Yannis Stournaras warned that failure to reach a deal would, “mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and – most likely – from the European Union”.
Raising further controversy, House PresidentZoeKonstantopoulou from SYRIZA gave Stournaras a tongue lashing, refusing to have his report submitted to the parliament, saying she was “returning this document as unacceptable”.
http://www.neurope.eu/article/opec-keeps-pumping-greek-crisis-spikes-oil-prices/