• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 2 hours Waste-to-Energy Chugging Along
  • 49 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 5 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 49 mins Let's Just Block the Sun, Shall We?
  • 10 hours Venezuela continues to sink in misery
  • 10 hours Regular Gas dropped to $2.21 per gallon today
  • 8 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 8 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 4 hours UK Power and loss of power stations
  • 2 hours What will the future hold for nations dependent on high oil prices.
  • 18 hours $867 billion farm bill passed
  • 20 hours Air-to-Fuels Energy and Cost Calculation
  • 16 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 4 hours EPA To Roll Back Carbon Rule On New Coal Plants
Alt Text

Is Gasoline Demand Really Slipping?

In a somewhat befuddling scenario,…

Alt Text

Could Iraq Be The Next OPEC Member To Exit?

Just two days after Qatar’s…

Alt Text

Will Self-Driving Cars Ever Be Safe Enough?

Collisions involving self-driving cars are…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News