June 16:
Source: http://www.thestar.com.my/Business/Business-News/2015/06/16/Oil-slips-on-Greece-concerns-as-July-Brent-expires/?style=biz
NEW YORK: Oil prices fell
in volatile trading on Monday as the Greek debt crisis raised concerns
about demand for petroleum in Europe and as the U.N. started talks to
try to bring peace to Yemen, where OPEC heavyweight Saudi Arabia is
involved in a civil war.
Expiring front-month July Brent fell US$1.26
to settle and go off the board at US$62.61 a barrel. August Brent fell
69 cents to settle at US$63.95.
The weak July Brent expiration also
signalled "a much over-supplied North Sea trade that is seeing the
impact of near record OPEC production both directly and indirectly," Jim
Ritterbusch, analyst at Ritterbusch & Associates in Galena,
Illinois, said in a research note.
US July crude fell 44 cents to settle at US$59.52, after trading from US$58.73 to US$59.98.
The spread between Brent and US crude
(CL-LCO1=R) shrank to US$2.65 a barrel intraday, the narrowest since
January. A month ago it was more than $7 a barrel.
Brent has fallen from a high above US$66
last week and appeared to be settling in a range between US$60 and
US$65, said Carsten Fritsch, senior oil and commodities analyst at
Commerzbank in Frankfurt.
Global stock markets fell on Monday after talks between Greece and its creditors collapsed on Sunday.
The euro recovered from earlier weakness.
The dollar's intraday strength had weighed on oil futures as a strong
dollar makes dollar-denominated oil more expensive for consumers using
other currencies.
United Nations chief Ban Ki-moon launched
Yemen peace talks in Geneva with a call for a humanitarian truce after
warplanes from a Saudi-led Arab coalition pounded the capital Sanaa.
US industrial production unexpectedly fell
in May, data released on Monday showed, as a strong dollar and energy
spending cuts weighed on manufacturing and mining output.
Oil futures felt pressure from concerns
about surplus supply with the Organization of the Petroleum Exporting
Countries (OPEC) pumping about 2 million barrels per day (bpd) more than
needed, according to most industry estimates.
Output is increasing in Libya, where production has been constrained by civil war.
Production has risen in Saudi Arabia and
Iraq, and a deal on Iran's nuclear program could lead to sanctions being
lifted, allowing Tehran to increase exports.
"Sentiment this morning gets a bearish touch
from negative equities, a dollar to the strong side, Greek concerns and
news of some increase in Libya oil production," said Bjarne Schieldrop,
chief commodities analyst at SEB Markets in Oslo.- Reuters
Source: http://www.thestar.com.my/Business/Business-News/2015/06/16/Oil-slips-on-Greece-concerns-as-July-Brent-expires/?style=biz
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