July Nymex WTI prices remain in negative territory Monday after giving up all of their gains seen in Asian hours. Prices had been as high as $85.56 early on in the Asian session before paring back sharply to an Asian low of around $84.46 as a moderate, but cautious, risk-on theme developed in Asia. Prices were, however, reluctant to push on to the upside as many sizeable Asian accounts held back to see what European market’s reaction would be to the Greek election results. WTI prices advanced back to $85.22 before surrendering all of their gains before and during the European equity session, where risk assets all gave back their early gains to reverse into negative territory. WTI prices followed a heavy tone showed by the euro across FX markets, with July prices declining sharply to intra-day lows of $83.67 a barrel, before briefly recovering to above $84 a barrel. Rising Spanish 10-year yields brought the moderate risk rally to an abrupt end, taking the wind out of WTI oil prices, with July WTI now currently trading $83.75 a barrel, down 28 cents from Friday’s NY close.
EasyForexNews Research Team