Oil markets freefalling

first_imgOil prices keep sinking over Greece’s prolonged negotiations with creditors to avoid a debt default and a possible exit from the eurozone.“The Greece headlines continue to dominate the trade… and I think there is an inability (to rally) when there’s this overhanging Europe,” Phil Flynn of Price Futures Group said.“Traders are bracing themselves, although we see a fatigue in the markets running parallel to the fatigue of finance ministers trying to negotiate a deal,” said Tim Evans at Citi Futures.Oil is priced in dollars and therefore becomes more expensive for holders of other currencies as the greenback appreciates. Greece and its European Union and International Monetary Fund creditors’ failure to break the deadlock in emergency talks on a bailout deal, raise more fears of a default and Grexit.Oil prices’ seven month free-fall could potentially cause a breakout on prices.Traders also keep an eye on the looming June 30 deadline for Iran and six major powers to reach a landmark nuclear deal that would prevent Tehran from developing nuclear weapons in exchange for lifting sanctions, including on its oil exports.Analysts have said that the currency markets are too volatile for their run as the big driver of oil prices to end soon. They highlighted that a deal over Greek debt is essential for things to change as investors are tracking the latest twists of the looming deadline in the Iran nuclear talks.[Sources: Fox Business, Reuters, ABC] Facebook Twitter: @NeosKosmos Instagramlast_img read more

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