FX:Crude oil steady as EU talks on Greece, embargo eyed
Forexpros - Crude oil futures were almost unchanged on Monday, as uncertainty over the outcome of a deal to restructure Greek debt weighed on market sentiment but prices remained supported ahead of talks to discuss an EU oil embargo on Iran.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD98.39 a barrel during European morning trade, ticking up 0.06%.
It earlier declined by as much as 0.9% to trade at a five-week low of USD97.47 a barrel.
Finance ministers from the European Union were to meet later in the day to discuss the terms of a debt restructuring package for Greece.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when a EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
Meanwhile, oil traders continued to monitor tension between Iran and the West, ahead of a meeting of EU foreign ministers to discuss harsh new sanctions on Tehran, including banning imports of Iranian crude oil.
The EU currently buys around 20% of Iran's oil exports.
On Sunday, an American aircraft carrier completed a “regular and routine” passage through the Strait of Hormuz, after Iran backed away from earlier warnings that it would take action to block the trade route.
Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery rose 0.23% to trade at USD110.10 a barrel, with the spread between the Brent and crude contracts standing at USD11.71 a barrel.
