Oil slips to $83 on fading optimism on Greece close

8:30 PM close, fading, Greece, optimism, slips No Comments

The price of oil slipped to $83 a barrel Monday close as optimism about the results of elections to the Greek has been overshadowed by continuing concerns over ongoing debt crisis in the euro zone, in particular in Spain.

By early afternoon in Europe scale was on oil for July delivery 75 cents $83.28 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose to pay 12 cents to $84.03 in New York on Friday.

94 Cents on $96,67 a barrel on the ICE Futures in London futures market, Brent crude delivery was August.

In Greece, the conservative New Democracy Party released the a bailout business, agreed supported the country this year, to win enough votes Sunday to form a coalition Government with another pro-bailout.

Investors had been bracing for a victory by parties, the favored rejection holding austerity measures necessary to ensure that the rescue money flow, a move that traders fear could be a financial crisis in Europe and beyond spark.

"In the short term, the markets are confident that the result will be Greece some space to breathe," said strategist Sean Darby Jefferies group. "But in the longer term investors can be not assured that the political upheaval is over."

Despite the cheers for Greece, investors pushed returns in Spain over 7% who had to request a year for 10 years bonds, a level as untenable and of which Greece, Portugal, and Ireland international rescue operations.

"In view of the fact that the (Greek) Government is, that likely push for a relaxation of the cost-cutting measures... the prospects for Greece far from certain is, especially since the debt crisis in Spain and is potentially Italy spill over", so the analysts at JBC energy in Vienna.

First, the Greek election results increased the euro, which helped to underpin oil prices early in the session. A weaker US dollar makes traded resources in dollars, such as oil cheaper for investors with other currencies. Euro, but fell to $1.2623 of $1.2637 late Friday in New York.

This week, investors will be closely meet Central Bank, mainly by the US Federal Reserve on Thursday one just want to identify decision-makers stimulus measures to increase with the growth of the world economy for signs.

In focus are also talks in Moscow between the Iran and six global powers who find common ground over the Islamic Republic's nuclear program. Led by the United States, have introduced several countries instead of oil sanctions against Iran, one of the world's most important suppliers, especially for parts of Europe and Asia.

"Because the risk premium has now completely eliminated the price of oil is likely to respond by you if the talks scheitern as it would more strongly upwards, when a breakthrough was achieved," said a report from Commerzbank in Frankfurt am Main.

In other energy trading, heating oil was up 1.47 cents to $2.6318 per gallon gasoline future 1.7 cents lost $2.6840 per gallon. Natural gas gained 2.8 cents to $2.495 per 1,000 cubic metres.