• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 8 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 1 day We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 4 hours Trump has changed into a World Leader
  • 5 hours Beijing Must Face Reality That Taiwan is Independent
  • 2 hours Let’s take a Historical walk around the Rig
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 4 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 2 days Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Greece And Iran Provide One-Two Punch To Oil Prices

Oil prices plunged on July 6 in the aftermath of the Greek referendum, which saw the Greek people hand Prime Minister Alexis Tsipras an overwhelming victory after they decisively rejected Europe’s bailout terms.

The “no” vote provides Tsipras with renewed momentum in negotiations with European creditors. Led by Germany, creditor nations had hoped that a “yes” vote would force the Greek government into further austerity measures in exchange for an extension of the bailout. Related: Russia Taking Full Advantage Of Greek Crisis

With Tsipras’ victory, Greece has drawn in a line in the sand with Europe. At the same time Greece’s position in Europe has now been plunged into murky waters. Citing the referendum result, several market watchers now say that a “Grexit” – Greece exiting the Eurozone – is quickly becoming a real possibility. The health of Greece’s banks is deteriorating, and “there is now a high likelihood of Greek exit from the euro, and possibly under chaotic circumstances,” JP Morgan Chase concluded.

The turn of events has taken the markets by surprise. Many thought Tsipras would have acceded to Europe’s terms on the bailout, and after he didn’t, many thought the Greek people would have voted “yes” on the package. Related: This Week In Energy: Top 4 Reasons Oil Prices Are Heading Back Down

But the “no” vote has created turmoil across the globe, and oil prices have crashed to their lowest levels in months. The crisis is weighing on the euro, and there is a “flight to safety,” meaning the dollar is strengthening. With oil priced in dollars, a stronger dollar amid the Greek crisis is pushing down oil prices. Related: EIA Data Still Diverging From Reality

Moreover, this week could also see another momentous international incident that drags down oil prices. The P5+1 nations are zeroing in on a deal with Iran over its nuclear program. The talks have been extended and are nearing a July 7 deadline, but bit by bit a deal is beginning to emerge. As the markets begin to accept the fact that a deal is actually looking more likely by the day, the prospect of a removal of sanctions on Iran and new Iranian oil hitting the market is also weighing on oil prices.

WTI dipped below $55 per barrel and Brent fell below $60 per barrel for the first time since April.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play