Oil Unchanged as Slow Demand Countered by Greek Hope

Oil prices steadied on Friday as worries about oversupply and slowing demand offset support from a rebound in Chinese stock prices and hopes of a breakthrough in the Greek debt crisis.

Brent crude oil LCOc1 was up 7 cents at $58.68 a barrel by 1254 GMT (8:54 a.m. EDT). So far this month, the international benchmark has lost more than 7 percent.

Front-month U.S. crude futures CLc1 were trading 9 cents higher at $52.87 per barrel.

Oil’s flat performance contrasted with a rally in other global financial markets, which drew support from hopes a deal would be reached soon to keep Greece in the euro and a rebound in Chinese equities, which had fallen sharply.

The International Energy Agency (IEA) said on Friday that oil prices are set to come under further pressure from easing global demand and an expanding glut of crude, while a rebalancing of the oil markets may last well into next year.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza