Oil prices tumble amid Greek woes

June 17, 2011: 7:40 AM ET
chart_ws_commodity_energy_oil.top.png

Click the chart for the current price of oil and other commodities.

NEW YORK (CNNMoney) -- Oil prices fell to a fresh four-month low Friday as jitters about Greece's debt crisis continued to weigh on investors.

In electronic trading, oil for July delivery fell nearly 3% to $92.12 a barrel, its lowest intra-day level since Feb. 22 -- before heading back up to $93.81 later in the morning.

Fears about Greece defaulting on its debt have kept investors on edge for more than a year, but they escalated this week after riots erupted in Athens in response to austerity measures.

In response, Greek Prime Minister George Papandreou reshuffled his cabinet Friday, and European finance ministers are scheduled to meet Sunday to discuss a possible bailout package.

Nevertheless, tensions remain high. Even Alan Greenspan, the former Federal Reserve chairman, has said a default by Greece is "almost certain" and could help drive the U.S. economy into recession.

The possibility of a Greek default rippling through the world economy has investors fearful about any kind of risk assets like stocks and oil.

"Personally, I'm going to recommend clients lighten up on both the S&P and oil today. That way we can take a more aggressive stance on Monday," said Phil Streible, senior market strategist with futures broker Lind-Waldock.

So far, oil has come off its morning lows after German Chancellor Angela Merkel and France's President Nicolas Sarkozy said they have agreed on a structure of a bailout package that would include voluntary support from private investors.

Next, they will seek the European Central Bank's approval of the deal.

On Thursday, the International Energy Agency forecast that demand for oil -- particularly from emerging markets like China -- is likely to exceed supply by 2016.  To top of page

Index Last Change % Change
Dow 17,776.93 420.06 2.42%
Nasdaq 4,748.40 104.09 2.24%
S&P 500 2,061.14 48.25 2.40%
Treasuries 2.20 0.06 2.61%
Data as of 4:00pm ET
Company Price Change % Change
Bank of America Corp... 17.46 0.20 1.19%
Apple Inc 112.19 2.78 2.54%
Oracle Corp 45.25 4.09 9.94%
General Electric Co 25.03 0.60 2.46%
Ford Motor Co 14.74 0.29 2.04%
Data as of 3:45pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.07%4.07%
15 yr fixed3.13%3.09%
5/1 ARM3.22%3.08%
30 yr refi4.12%4.12%
15 yr refi3.19%3.16%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.