Start the conversation
By 1:40 p.m., WTI crude oil prices dropped 2.05% to $59.21 a barrel. The U.S. benchmark is down 0.4% this week and 1.6% this month.
Brent crude oil prices suffered even more. The international benchmark fell 2.34% to $63.47 a barrel. Brent has tumbled 1.8% since Monday and 3.8% since June 1.
Here's a breakdown of why WTI crude oil prices are down today…
Why WTI Crude Oil Prices Are Down Today
Investors are uncertain if there will be a Greek default soon. A default could hurt oil demand across Europe as tension increases regarding Greek Eurozone membership.
"Most of the European oil demand growth this year is coming from the southern countries of Europe," said Olivier Jakob, managing editor of Swiss energy newsletter Petromatrix, to The Wall Street Journal. "Therefore, if there was a Greek default and a contagion of a risk premium to other southern European countries, it could have a negative impact on European oil demand."
Meanwhile, traders are anticipating the June 30 deadline for a potential Iranian nuclear deal. If a deal is reached, it will ease international sanctions against the country and release more Iranian oil into the already oversupplied market.
But according to Money Morning Global Energy Strategist Dr. Kent Moors, the agreement won't last.