New York crude oil prices slumped to a five-month low as investors were unnerved by Greece’s political deadlock and Europe’s mounting debt crisis, and also by the Saudi oil minister’s statement of global oil oversupply, market data suggested on Monday.
New York’s main contract West Texas Intermediate crude for June deliveries hit $93.65 per barrel earlier on Monday, the lowest level since mid-December, before bouncing back to $94.14 per barrel.
Brent crude for June deliveries fell by $1.90 to $110.40 per barrel in London afternoon trading, hovering at a four-month low.
The oil price downfalls were triggered by a statement made by Saudi Oil Minister Ali Al-Naimi that oil supply considerably exceeded demand on global crude markets and the Brent North Sea benchmark could plummet to $100 per barrel soon.
Another factor was the political deadlock in Greece, now teetering on the brink of a sovereign default after the country’s main political parties failed to narrow their disagreements over a painful bailout deal struck with the International Monetary Fund and the European Union in exchange for tight austerity measures.