The future of the European Union and of its unified currency, the euro, might be at stake because of the Greek crisis and Chinese stock market has seen an unprecedented shake-up, which only means global oil prices have gone down massively once more.
While all the woes could turn into another recession if the trouble is not handled well, American motorists might actually find the silver lining in all the commotion – lower global oil prices mean in the near future the drivers will pay less at the gasoline stations, according to experts. “Uncertainty over Greece is bearish for oil. It adds an extra negative factor on top of the turmoil in Chinese financial markets, the recent rise in U.S. drilling rigs, and a potential increase in Iranian oil supply,” comments Olivier Jakob, senior energy analyst at Petromatrix in Zug, Switzerland. Yesterday the European Brent crude oil had lost $1.61, or 2.7%, to $58.71 a barrel. U.S. light crude was tumbling even faster, by 4.5 percent to $54.36. The numbers would be the lowest in around two months.
The situation in China, where there’s a booming stock market that attracted an emergency response from the government, corroborates with the recent referendum in Greece where voters rejected a bailout offer from the EU. And oil production is at or close to record levels in the OPEC block, as well as in Russia. And Iran could flood the market with oil if the negotiations with the US go well. In the US, according to tracking service GasBuddy.com, the national average stood at $2.766 for a gallon of regular gasoline.