Oil Futures Fall On Greek Crisis, Rising Dollar

By MarketWatch Pulse

Oil futures moved lower in electronic trade early Monday, pushed down by concerns about a possible Greek default and a consequently stronger U.S. dollar. By midday in East Asia, New York-traded August crude-oil futures were down 89 cents, or 1.5%, at $58.76 a barrel on the Globex trading platform. London-traded rival benchmark Brent crude was weaker by 82 cents, or 1.3%, at $62.43 a barrel. The drop came as stocks sold off across Asia following Greece's decision to hold a referendum on the nation's bailout terms, significantly raising the risk of a default. The Greek fears also drove investors into some "safe haven" assets, including the U.S. dollar, with the ICE Dollar Index up 0.7% for the day at 96.15, according to FactSet. A rising dollar can weigh on dollar-denominated commodities -- such as crude oil -- by making them more expensive to holders of other currencies.

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