Risk aversion dominated energy markets as prices fell sharply on heightened fears that Greece could exit from the eurozone. On Sunday, Greeks overwhelmingly voted against their international creditors’ conditions for further bailout aid, adding to uncertainty around the country’s eurozone membership and heightening risks of market contagion. “Markets are due for a bumpy ride as the face-off ensues,� Singapore-based Phillip Futures said. Nymex crude-oil futures for August delivery CLQ5, -4.62% fell $2.37, or 4.1%, to $54.56 a barrel. ICE Brent crude LCOQ5, -2.92% fell $1.28, or 2.1%, to $59.04 a barrel. Investors were also reacting to the sharp fall in oil prices from Friday. U.S. crude-oil prices are particularly weak due to the country’s unexpectedly high oil inventory figures and bearish drilling-rig count last week, Philip Futures analyst Daniel Ang said. Oil prices also are being pressured by the continuing Iranian nuclear talks expected to conclude this week. Iran could double its crude exports soon if sanctions are lifted, said Iran’s deputy oil minister for planning and supervision, Mansour Moazami. However, recent oil-market jitters have mostly been driven by market psychology rather than by any change in the fundamental supply and demand picture, said Michael Wittner, head of oil research at Société Générale. “While our outlook remains neutral, all three possible Greek-related factors—higher risk aversion, a stronger dollar, and a slowdown in the European economy—would be bearish for oil prices,� Wittner said.

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