Oil’s Slippery Slope

Oil futures fell sharply on Monday mainly attributed to the news coming out of Greece but also because the recent uncertainty in China's markets has renewed fears of a global slowdown.  Down 7.7 percent - or $4.40 - to $52.53 a barrel, this decline in the price of oil followed the significant "No" vote on Sunday. Oil futures reacted negatively to the vote, fearing that a possible Greek exit from the Eurozone would affect Europe's economy adversely and impact Europe's energy use. Although Greece is a relatively small oil consumer, the European economy would still take a significant hit from a "Grexit" thus affecting energy demand throughout the region. China is the world's second largest importer of oil and their wild market ride is showing no signs of abating despite the government's emergency measures, says Voya Global Perspectives.