Oil Down 2% On Greek Worries, Weaker Products Markets



Reuters

NEW YORK, June 19 (Reuters) - Crude oil fell about 2 percent on Friday, the first decline after three days of gains, as worries over the Greek fiscal crisis, weaker oil products prices and pre-weekend profit taking undercut the market.

Gasoline and diesel's proxy, heating oil, led the oil complex lower, sliding more than 2 percent as concerns about their high refining margins over crude prompted those who had been bullish on such products to close out some positions.

A slowdown in the decline of U.S. oil rigs did not help. Oil services firm Baker Hughes reported an overall drop of four U.S. rigs this week, compared to 7 last week. It also cited new drilling activity in the Permian and Bakken shale basins, a sign that higher crude prices were coaxing producers back to the well pad after a six-month price rout.

Brent crude fell $1.24, or 1.9 percent, to settle down for the first time since Monday at $63.02 a barrel.

U.S. crude slipped 84 cents, or 1.4 percent, to $59.61.

For the week, Brent fell 1.3 percent, and U.S. crude half a percent.

Traders said the decline was mostly on fears about Greece, which teetered on the edge of default.


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