• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 4 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 6 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 1 day Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 1 day Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 4 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 5 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Oil Prices Crash On New Covid Fears

Oil Prices Crash On New Covid Fears

Oil prices crashed on Friday…

Will Biden’s $1 Trillion Infrastructure Bet Pay Off?

Will Biden’s $1 Trillion Infrastructure Bet Pay Off?

President Biden’s $1 trillion infrastructure…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

How Greece Crisis Could Drag Oil Prices Down

The Greek tragedy is reaching its climax.

The discussions between Greece and its European creditors broke down over the weekend, with the two sides still at an impasse. Greek Prime Minister Alexis Tsipras balked at deeper austerity cuts to the Greek economy, cuts that are a prerequisite for further help from Berlin and Brussels.

As a result, Greece is approaching the precipice. With a massive debt payment due on June 30 to the IMF, Greece could default. The extent of the fallout is anybody’s guess, but Greece could see the value of its bonds plummet, putting its banks in crisis, and ultimately the country could be ejected from the Eurozone. The Greek government declared a bank holiday for six days in order to stop the cash exodus from the Greek financial system. Related: New Safety Feature: A Smart Car Programmed To Let You Die?

The crisis is dragging down global equity and commodity markets. Greece is not a major oil producer or consumer, so it won’t have much sway over oil markets directly. But the spillover could have two immediate effects on oil apart from supply and demand fundamentals.

First, the calamity is spooking investors who fear a broader contagion. While Europe has had several years to insulate itself from Greece’s problems, the mess is still weighing on the bloc’s economic prospects. That will likely pull down oil prices a bit. Related: U.S. Oil Glut An EIA Invention?

A second effect comes in the form of currency fluctuations. Greece’s calamity, and the rising prospect that it leaves the Eurozone, will damage the value of the euro. As the euro takes a hit, the U.S. dollar looks better by comparison, both as a safe haven and as an investment vehicle. If the dollar appreciates, that will push down oil – since oil is priced in dollars, a stronger dollar makes it more expensive. Related: This Week In Energy: Oil Prices Under Pressure From All Sides

The effects could be temporary. If the chaos doesn’t spread beyond Greece, the markets will go back to business as usual. Even if Greece experiences dire economic consequences, if other EU member states are not dramatically affected, and if the euro itself appears safe, global markets including oil should move forward without lingering damage.

On the other hand, if Greece starts dragging down the Eurozone and the euro, oil prices could fall much further.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Jenny Klaus on June 29 2015 said:
    Oh my God! Cheap oil is here to stay

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News