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Oil prices fall as dollar gains from Greece woes

Friday, June 12, 2015 - 20:09

[LONDON] Oil prices fell on Friday with the dollar rising as traders grew concerned about Greece's troubled debt negotiations, traders said.

US benchmark West Texas Intermediate for delivery in July dropped 55 cents to US$60.22 a barrel compared with Thursday's close.

Brent North Sea crude for July eased 34 cents to stand at US$64.77 in London afternoon deals.

Oil prices turned "bearish after the dollar's rally against the euro on Greek debt worries weighed on demand for commodities", United Overseas Bank said in a market commentary.

The stronger greenback makes dollar-denominated crude more expensive for buyers using weaker currencies.

The International Monetary Fund (IMF) on Thursday withdrew from eleventh-hour talks in Brussels, saying an agreement remained far-off after a five-month stalemate with Greece's anti-austerity government, which faces being unable to pay huge debts at the end of the month.

Greece must reach a compromise with its creditors - the IMF, European Commission and European Central Bank - before the end of the month to unlock much-needed cash to service its debts. Failure to do so will lead it to default and possibly exit the eurozone.

AFP