Prices drop after shifting between gains and losses in the wake of Greek election outcome
New York-traded oil futures ended lower on Monday, 26 January 2015 at Nymex after shifting between gains and losses in the wake of an election win by Greek antiausterity party Syriza. Following reports of the outcome, which raised concerns that Greece could break the conditions of its international assistance and perhaps even leave the eurozone, Nymex's crude dropped to its lowest point in the session.
Light, sweet crude for March delivery fell 44 cents, or 1%, to close at $45.15 a barrel on the New York Mercantile Exchange.
While the U.S. dollar and dollar-denominated crude-oil futures often move inversely, both began to lose ground early Monday just as news broke that Greece's Syriza party was projected to have won the general election there.
Earlier Monday, the Organization of the Petroleum Exporting Countries' Secretary-General Abdalla el-Badri said oil at $200 a barrel would be possible if producers don't invest in new supply. Prices between $45 a barrel and $55 a barrel are likely the bottom, with a rebound likely “very soon”.
Among other energy products, Nymex gasoline for February fell 3.12 cents, or 2.3%, to $1.3167 a gallon, while February heating oil lost 0.69 cents, or 0.4%, to $1,6398 a gallon.
Elsewhere in energy trading, natural gas for February delivery fell 10.5 cents, or 3.5%, to $2.881 per million British thermal units. The contract had rallied 5.3% on Friday, driven higher amid a massive cold spell across much of eastern North America.
