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Oil fell in the Asian trade today on lingering fears of a financial default by debt-ridden Greece and the International Energy Agency’s move to release emergency reserves.
New York’s main contract, West Texas Intermediate for delivery in August, fell 65 cents to $90.51 a barrel in the morning trade continuing the fall sparked by the IEA’s announcement last week.
Brent North Sea crude for August delivery declined 67 cents to $104.45, an extension of the $2.13 dip seen on Friday.
Mr Ker Chung Yang, an analyst with Phillip Futures in Singapore, said investors remained concerned over the possible fallout from Greece’s debt crisis, with the IEA’s decision to tap into its emergency reserves also a key influence on prices.
The IEA provoked a massive sell-off after announcing it would release 60 million barrels of crude oil from strategic oil stocks over the next month to make up for the lost supplies from Libya.
“Crude oil prices will stay volatile as the greater concern is still on Greece and the overall recovery of the US economy,” Mr Ker said.
Adding to disquiet over Greece’s mounting debt problems were comments from the Austrian Chancellor, Mr Werner Faymann, who warned in an interview on Sunday: “A Greek debt default cannot be ruled out.”
Greece faces a momentous battle in Parliament this week to quash dissent over additional austerity reforms needed to secure a vital new bailout from the European Union and the International Monetary Fund.
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