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/