NewsOil slides towards its worst week amid concerns about Greece
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AnalysisOil prices fell on Monday morning extending Friday’s losses when it ended on the biggest weekly decline in six weeks as the negative economic outlook is dominating financial markets and the European debt crisis knocked crude prices to their lowest in four months.

Oil is still declining since last week, affected by the fears dominating in the markets about the sovereign debt crisis in Greece, and its negative effect on the global economic recovery, especially with mounting speculation for Greece to default.

Crude oil futures declined 1.7% expanding the losses recorded last week, after the European finance ministers disagreed on providing the fifth tranche of last year’s 110 billion bailout; where the disagreement might push the 12 billion euro payment till mid-July and some suggested provided only 6 billion euros of the loan.

Fears are still dominating the markets because of the debt crisis in addition to the political unrests and the huge protests in Greece because of the new austerity measures announced, where Papandreou now is hoping that the Parliament will assist the government with the confidence vote to pass the austerity package.

The Greek PM George Papandreou last Friday appointed a new finance minister within the attempts in gaining confidence. Papandreou is supposed to be facing the parliament for the confidence vote, which is expected sometime last Tuesday, where the confidence vote is needed so that the government can enforce the new austerity measures that are needed to acquire the bailout funds from the EU and IMF and pave the road for a new bailout package.

Crude oil futures fell last week by 6.3% to close at $93.1 a barrel which is considered the lowest in 18 months. On Friday, the RJ/CRB index for commodities recorded a decline by 1.41 points to end at 335.48, and S&P GSCI closed last week at 669.11 point after it declined by 5.69 points.

Crude oil futures for July settlement opened at $92.76 a barrel recording the intraday high at $93.02 a barrel and a low of $91.13 a barrel and is currently trading around $91.37 a barrel, while the more active August contracts opened today at $93.18 recording the highest at $93.38 and the lowest at $91.50 and currently trading around $91.99 per barrel.