LONDON—Crude-oil futures fell following Greece's decision to hold a popular referendum on the plan to solve its sovereign debt crisis and amid a stronger dollar, seen as a safe haven.
Prices of all risky financial assets dropped Tuesday as Greece's decision to hold a referendum on the country's latest bailout package added uncertainty over Europe's sovereign debt crisis, analysts said. However, the fall in oil isn't as sharp as in some other commodities and equities.
"We are now back to square one," said Ole Hansen, Saxo Bank's futures and fixed income trading desk manager.
The Greek referendum announcement "sent shudders through financial markets, reinforcing concerns that the country will not be able to push through austerity plans," JBC Energy said in a note.
Ahead of the New York day, the front-month December Brent contract on London's ICE futures exchange was down $1.90, or 1.7%, at $107.66 a barrel. The front-month December contract on the New York Mercantile Exchange was trading down $2.49, or 2.7%, at $90.70 a barrel.
Weaker-than-expected manufacturing figures from China added to downward pressure on oil futures, analysts said. U.S. economic data, including October manufacturing figures due at 10 a.m. ET, will also be closely watched.
If the U.S. and China, the world's leading oil consumers, see their economies slow down, it is likely to reduce global demand for oil.
Elsewhere, the American Petroleum Institute, an industry body, will release its survey of U.S. crude oil and products inventories at 4;30 p.m. ET. The data will be closely watched, as falls in inventories in October helped push Nymex crude prices higher.
