Brent crude heads below $60/ bbl; pressure likely to stay

Oil prices fell sharply in early trade on Monday, heading below USD 60 per barrel, after Greece rejected austerity measures demanded in return for bailout money.

Both US and internationally-traded Brent futures were down over 1 percent, trading at USD 55.08 and USD 59.72 per barrel respectively at 0035 GMT, both crude futures were at their lowest level since mid-April, according to a Reuters report.

Jonathan Barratt, CEO & Chief Economist of Barrattsbulletin.Com, says the pressure on brent is on the back of not just a sentiment change in terms of what will happen with Greece going ahead, it is also because of fundamental factors such as nuclear deal with Iran, which has the potential to affect supply. He adds that the pressure on crude oil is likely to stay as the geopolitical factors will continue to persist for some time.

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