-Oil prices fall on Iran and Greece on Tuesday
Oil prices fall somewhat further in early hours of Tuesday, weighed down by the Greek debt crisis and signs that it may be signed an agreement for Iran’s nuclear program within a few days.
Brent 1st position, which is the August contract, quoted at $ 61.90 per barrel on Tuesday, down 11 cents from the previous trading day, when the contract fell $ 1.25 to $ 62.01 a barrel.
The price was approximately $ 62.27 per barrel at closing for the Oslo Stock Exchange on Monday. Brent spot for immediate delivery was noted at $ 61.90 per barrel on Tuesday, up 2 cents from the previous trading day.
Worries over oversupplied oil
A possible agreement between Iran and the so-called P5 + 1 group will mean that the West’s sanctions against Iran would be lifted entirely or partially. According to Iran itself, the country could double its oil exports from the current approximately one million barrels per day within six months, if all sanctions lifted.
The concern among many is that there is already oversupplied oil market which must absorb a significant increase in supply. Combined with many investors now shun risk and seek to safer asset classes as a result of the financial crisis in Greece, this has led to decline in recent days.
-The Global supply is still high, so if we see additional oil from Iran, it could be a problem, says analyst David Lennox Fat Prophets to Bloomberg News.
Fears Greece infection
He believes the outlook for oil prices start to become pale, especially if the crisis in Greece spilling over to other euro countries.
Analysts Wall Street Journal spoke with, generally agree with Lennox.
-Pour situation promises up images of slower European growth, and it looks like that is what this market is fixated on. I think it is related to a broad global trend towards a “risk-off” environment, says Jim Ritter Busch in analyse house Ritter Busch & Associates to the newspaper.
Highest oil inventory in two years
Otherwise, the global oil production continues to exceed consumption. Although oil brokers have largely focused on dwindling oil stocks in the US in recent weeks, is still growing inventories. The combined crude oil stocks in Amsterdam, Rotterdam and Antwerp rose recently to 60.6 million barrels, which is the highest level in at least two years.
WTI 1st position, which is the August contract, quoted at $ 58.10 per barrel on Tuesday, down 23 cents from the previous trading day, when the contract fell $ 1.30 to $ 58.33 a barrel.