Oil prices fall below $93 as Greek crisis undermines euro

PanARMENIAN.Net - Oil prices fell below $93 a barrel Monday, June 20, in Asia as Greece's deepening financial crisis undermined confidence in the euro.

According to AP, benchmark oil for July delivery was down 40 cents to $92.61 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost $1.94, or 2 percent, to settle at $93.01 on Friday.

In London, Brent crude for August delivery was down 67 cents to $112.54 a barrel on the ICE Futures exchange.

A strengthening U.S. dollar has helped drag crude down from almost $115 early last month. A rising dollar makes commodities such as oil more expensive for investors with other currencies. Talks between eurozone finance chiefs on Greece's troubled finances ended early Monday without the ministers signing off on a vital installment of rescue loans needed to avoid bankruptcy next month.

The euro fell to $1.4281 on Monday from $1.4307 late Friday.

If the euro drops below $1.40, crude will likely fall to between below $88, energy consultant The Schork Group said. "We think that further U.S. dollar strength will lead oil into the high $80s," Schork said. "As far as this week goes, look to the greenback."

In other Nymex trading in July contracts, heating oil fell 1.3 cents to $2.97 a gallon while gasoline dropped 1.7 cents at $2.93 a gallon. Natural gas futures slid 1.7 cents at $4.31 per 1,000 cubic feet.