|News||Mixed oil prices in the Asian session with the prevailing jitters|
|Analysis|| Oil was mixed in the Asian session today, as the concerns about Greece’s debt crisis tempered support from a rebound in US and Asian equities. Oil prices inched higher to near $94 a barrel as the strong decline supported bargain buyers especially as the dollar gains eased.|
Oil opened today at 94.39 recording the intraday high at $94.59 and the low of $94.33 and is currently trading around $94.40.
All eyes are still on Greece, which is trying to implement tough new austerity measures to keep international aid coming so it can deal with its debt crisis. Greece’s financial troubles could spread to other European countries, yesterday was the second day of talks in Luxembourg between the area’s finance ministers, and they did not reach a final agreement on the next installment of bailout loans for Greece as the decision is still pending more commitment from Greece!
Yesterday, Europe gave Greece till mid-July to drive through the painful austerity measures, and they did so in order to allow the Greek PM Papandreou’s government time to win a confidence vote called for today, the euro zone governments decided to meet again on July 3 to decide on emergency cash and work out the details of a second bailout worth more than 100 billion Euros to help Greece avoid default.
The USDIX opened today at 75.01 recording the highest at 75.02 and the lowest at 74.40 and is currently trading around 74.79.
Oil tends to rise when the dollar drops as a cheaper dollar makes commodities more appealing and the inverse relationship supported oil further today which was generally biased to the upside this morning after the strong losses seen.