GREECE MOVING DOWN
Oil prices fell on Monday, with U.S. crude dipping below $59 per barrel to an almost three-week low, after Greece imposed capital controls as lenders refused to extend the country's bailout.
Financial markets weakened across the board, with the euro dropping to its lowest in almost a month and share prices in Asia tumbling, amid worries of cash-strapped Greece being forced out of the euro zone.
"As far as the oil market is concerned, the potential ramifications are downward," said Ric Spooner, chief market analyst at Sydney's CMC Markets. "If the situation drags out then that will be a dent to confidence for investors."
Brent crude LCOc1 was down 79 cents at $62.47 a barrel by 0505 GMT, after rising 6 cents to $63.26 a barrel on Friday.
U.S. crude CLc1 was down 85 cents at $58.78 a barrel. It reached $58.63 earlier, the lowest since June 9. The benchmark closed down 7 cents on Friday at $59.63.
Oil investors are also monitoring negotiations on Iran's disputed nuclear program going on in Vienna, Spooner said.
Iran is backtracking from an interim nuclear agreement with world powers three months ago, Western officials suggested on Sunday, as U.S. and Iranian officials said talks on a final accord would likely run past a June 30 deadline.
"The deadline is likely to be extended so that makes it a little less at the cutting edge of thinking right now," Spooner said. "But we have rallied a fair way so the market is a bit vulnerable to increases in supply."
Securing an agreement would end a nuclear standoff between Iran and the West that could eventually lead to suspending sanctions and allow Tehran to raise crude exports, adding to an already well-supplied world market.
"The surplus in the market isn't going to clear terribly quickly. Indeed, it could be somewhere in the middle of 2016 till we start eating into inventories on a global basis so we're relatively cautious in terms of upside," said David Fyfe, head of market research & analysis at Gunvor Group.
"On the flip side, at $60, a lot of people are stopping developing new projects, there's maybe a million barrels a day (of oil) by 2017 that's not going to be there. So at some stage, there's going to be rebound in prices when some of these project deferrals start having an impact on the market," Fyfe added.
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.