Oil drops on Greek turmoil and Chinese concerns

FXStreet (Mumbai) - Oil prices at both the sides of the Atlantic fell sharply on Monday after world inched a step closer to Grexit after Sunday’s referendum. The energy space was also sucked in the turmoil witnessed in the Chinese stock markets.

The front month WTI Crude oil future currently trade 2.32% lower at USD 54.23/barrel, while the Brent futures are down 2.88% at USD 58.59/barrel.

The result of Greece’s referendum has brought the world closer to a potentially destabilizing event of Grexit.
Furthermore, the rout in the stock markets in China is on the verge of turning into a full fledged crash, which may hurt the world’s second largest economy.

Meanwhile, the rig count data in the US released on Friday was bearish since drilling increased for the first time after 29 weeks of declines.