Oil Drops After Europe Freezes Greek Aid, U.S. Stockpiles Rise
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Oil fell, erasing yesterday’s gains, on speculation that Greece’s referendum on a bailout agreement threatens to intensify the European debt crisis and derail the region’s economy.
Futures slid as much as 1.8 percent after leaders in Europe severed aid payments to Greece and raised the prospect of the euro area splintering if the nation votes against a rescue package agreed to last week. Brent crude’s technical indicators are bearish in the near-term amid “significant” downside risks to demand, according to Standard Chartered Plc. U.S. oil and gasoline inventories rose more than forecast last week.