MARKET WATCH: NYMEX, Brent crude oil prices slump on Greek default fears

June 30, 2015
US light, sweet crude oil futures and Brent crude oil futures for August delivery each settled down by more than $1/bbl on June 29, with Brent sliding to its lowest closing in more than 2 months.

US light, sweet crude oil futures and Brent crude oil futures for August delivery each settled down by more than $1/bbl on June 29, with Brent sliding to its lowest closing in more than 2 months.

Analysts attributed the oil price drop in part to a growing likelihood Greece will default on its loans and be unable to make a loan payment to the International Monetary Fund due June 30, adding to concerns that the country might have to abandon the euro.

In addition, tensions mounted about whether Iran will reach an agreement on its nuclear program by its June 30 deadline. An agreement would mean an easing of sanctions and the eventual return of more Iranian oil to world markets.

The August crude oil contract on the New York Mercantile Exchange fell $1.30 to $58.33/bbl on June 29, marking a 3-week low. The September contract was down $1.29 to settle at $58.68/bbl.

The natural gas contract for August was up 3.5¢ to a rounded $2.81/MMbtu. The Henry Hub, La., gas price was up 3¢ to $2.80/MMbtu.

Heating oil for July fell by 2.6¢ to a rounded $1.84/gal. The price for reformulated gasoline stock for oxygenates blending for July was down 1.8¢ to a rounded $2.03/gal.

The August ICE contract for Brent crude settled down $1.25 to $62.01/bbl, which was its lowest settlement since Apr. 15. The September contract was down $1.24 to $62.60/bbl. The ICE gas oil contract for July was down $9.50 to $564.50/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes for June 29 was $58.24/bbl, down 90¢.

Contact Paula Dittrick at [email protected].

*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.