The global price of crude oil on Monday, July 6 hit a five per cent drop, as a result of Greece’s rejection of bailout terms and China’s emergency measures to support its stock markets which sent shocks to the global oil markets.
This fall is the worst loss since the price plunged by seven per cent on April 8.
Reuters also reported that apart from the result of the Greek referendum, Iran and global powers were also trying to meet a July 7 deadline on a nuclear deal, thus putting more pressure to the oil markets.
The resolution of the dispute could add more oil to oversupplied markets if sanctions on Iran are eased. However, the self-imposed deadline could be extended again, officials at the negotiations said.
Consequently, the price of US crude, West Texas Intermediate (WTI) dropped to $2.61 at $54.32 a barrel on Monday morning, July 6, breaking below the 100-day moving average and heading south.
The price of Brent also soared by $1.60, or 2.7 per cent, to settle at $58.72, also snapping the 100-day average.