Business World

Wednesday 23 May 2018

Oil prices fall after Greek "No" vote

Oil prices fell on the back of the Greek
Oil prices fell on the back of the Greek "No"

Oil prices fell sharply today after Greece rejected bailout terms and as China rolled out emergency measures to prevent a full-blown stock market crash, adding to worries about poor demand growth amid global oversupply.

The result of the Greek referendum put in doubt its membership in the single currency, pulling down the euro on Monday against the dollar.

A strong dollar pressures oil markets as it makes dollar-traded fuel more expensive for holders of other currencies.

"Uncertainty over Greece is bearish for oil. It adds an extra negative factor on top of the turmoil in Chinese financial markets, the recent rise in US drilling rigs, and a potential increase in Iranian oil supply," said Olivier Jakob, senior energy analyst at Petromatrix in Zug, Switzerland.

"The main implication is for euro/dollar and I think it will put additional pressure on the euro," he added.


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