“Oil Price remain under pressure, while the euro continued to fluctuate at the mercy of contradictory statements (European leaders) of Greece,” said Olivier Jakob from Petromatrix Swiss oil company .
Finance ministers of the euro zone have conditioned the release on Sunday of a new tranche of aid to Greece’s adoption of the Greek Parliament as “key legislation” on the austerity measures and privatizations, and could decide to help finalize this at a special meeting scheduled for July 3.
Oil Price Stay on Focused
Oil price limited the losses after touching at the start of European trade 93.46 dollars. Despite this view, the market is still dominated by a strong nervous, prices failing to benefit from a reversal in the middle of European exchanges. In fact the dollar is left down slightly against the euro, a move likely to favor traditional purchases of dollar denominated crude for investors provided with other currencies.
“There is no doubt that the main factor dominating the euro and oil prices now are concerns about sovereign debt in the euro area,” confirmed Philip Wiper, the analyst at PVM brokerage.
“The specter of contagion (the Greek crisis would be considered as a fragility for other countries in the Europe) haunted the other mind at the cause against a default of Greece, will be reaching Ireland and Portugal in the next levels, “he added.
Some analysts fear after a “collapse in the Lehman Brothers”, named after the American bank whose bankruptcy in the fall of 2008 had precipitated the greatest financial crisis since 1929.
Oil Price in Low Demand
A possible default of Greece destabilize the banking sector in the euro area, which holds an important part of the country’s debt.
In addition, investors continue to question the robustness of the oil price and energy demand in the United States which they are the world’s largest consumer of crude, amid significant slowdown in economic growth.
“Indicators show that U.S. oil demand is weakening. According to the U.S. Department of Transportation, U.S. traveled 2.4% were decline less than one year ago on the country highways”, reported the experts at Commerzbank on Monday.
“Do not expect improvement for May or the beginning of the summer season of major car trips,” said the experts.
