MTECHTIPS:-Oil prices sharply lower after Greece default, bearish data

MTECHTIPS:-Oil prices sharply lower after Greece default, bearish data

Oil prices were sharply lower on Wednesday after Greece defaulted on a loan repayment to the International Monetary Fund and following bearish overnight supply data. On the New York Mercantile Exchange, crude oil for August delivery was last at $58.77 a barrel, down 1.17% for the day. Brent crude for August delivery, the global benchmark was down 0.69% to $63.15. Market sentiment was hit as Greece became the first developed country to default on the IMF as its bailout program expired. The IMF confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment by close of business on Tuesday. The fund said Greece can now only receive further funding after its arrears are cleared Data showing an unexpected build in U.S. oil stockpiles and soft Chinese manufacturing activity also weighed on prices Earlier Wednesday data from China indicated that activity in the manufacturing sector remained sluggish in June but service sector activity showed a slight uptick. The HSBC China manufacturing purchasing managers’ index rose to a final reading of 49.4 in June from 49.2 in May. A reading below 50 indicates a contraction.

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