On July 6, crude oil markets suffered a severe blow amid a range of
concerns stemming from Greece, Iran and China.
West Texas Intermediate (WTI), the US benchmark, was downmore than
4.5%in early on July 6 trading to $54.35 per barrel. Brent crude oil
priceslost 5%from the previous session to $58.96. Both indices are
at their lowest levels since mid April.
Voters in Greece decided overwhelmingly against an international bailout
deal on July 5, leaving the status of the eurozone and the Mediterranean
country’s future in question.
On July 6, Greece’s political party leaders agreed for a common political
front to find a solution and reach a deal with international creditors.
Greek Prime Minister Alexis Tsipras
andGermanChancellorAngela Merkelspoke by telephone on
July 6 and agreed that Athens would present proposals to a eurozone summit the
next day, aGreekgovernment source said.
Tsipras also spoke with Russian President Vladimir Putin, discussing the
outcomes of the Greek referendum. The Kremlin leader expressed his support to
the Greek people in overcoming the future difficulties in the country, Kremlin
press service said.
Meanwhile in Vienna, negotiators are working on resolving lingering issues
standing in the way of a formal nuke deal with Iran. More of Iran’s oil could
make its way to an oversupplied market if sanctions pressure eases, while
international ties could turn frosty should negotiators walk away from the
table with a deal in hand.
Iranian crude oil exports are limited to around 1 million barrels per day
and to six nations under the terms of existing sanctions. That’s about half of
the export potential for Iran, a member of the Organization of Petroleum
Exporting Countries (OPEC).
About70% of the Iranian nuclear dealhas been drafted and only a
few items are left to debate, a senior Iranian diplomat said, adding, however,
that the official insisted all the nuclear activities of Iran will continue.
Washington has said it would walk away if the deal was less than
satisfactory.
In China, which is a lead world economy and top consumer of crude oil, the
government sought toreassure investorswary of a steep drop in share
prices, using the weekend to roll out sweeping measures to stabilise market
sentiment. “It is an urgent task to bring the A share market back to a rational
track, as volatility of the market is detrimental to the sound and stable
development of the capital market,” the ruling Communist Party said.
http://www.neurope.eu/article/greek-crisis-iran-china-squeeze-oil-prices/