Oil turned lower in Asian trade today as Greek workers launched general strikes in protest over tough austerity measures lawmakers are due to vote on this week.
The strike, intended to last 48 hours, paralysed transport and public services as legislators debated the measures tied to the country's receiving rescue loans to avert bankruptcy.
Analysts have warned that a Greek default risks sparking a contagion across the rest of Europe that many fear this could again shake the global financial system. New York's main contract, West Texas Intermediate (WTI) for delivery in August, was down five cents to USD 90.56 a barrel in the afternoon, and Brent North Sea crude also for August dipped 31 cents to USD 105.68.
"Generally, prices are reflective of the economic condition of the world such as the debt issue in Greece," said Shailaja Nair, an analyst with energy information provider Platts.
Greek Prime Minister George Papandreou begged his parliament late Monday to do its "patriotic duty" and vote to keep the country "on its feet." Analysts said the markets were also still reeling from the International Energy Agency's surprise announcement that it would release 60 million barrels from strategic oil stocks over the next month to make up for lost supplies from Libya.
WTI has fallen sharply in the past two weeks, and was hit hard last week after the IEA move.
