After further negotiations, the Government committed in recent elections Athens, scramble to secure workable are due in Greece. This document provides the opinion and political turmoil, the global markets as Greece political unrest shakes you to the explore the potential impact of the oil.
15. in article in may 2012 MONEYMORNING
Continue to show weakness in the eurozone, Greece, in the event , you can speed up the situation. NYMEX crude oil prices downward movement that both London and the rising concerns.
In the aftermath of the election, the second in the limelight as the new Greece radical left SYRIZA party is strong in the country, promoting the party. The bailout reform permit SYRIZA leadership given by firmly refused, the party's new brokerage locations means that the crisis will continue.
Bitter austerity measures had received a majority of seats in the Congress of the party vote, the coalition Government formed after waiting. The Socialist PASOK party, allies new democracy for almost four decades, Greece is supported by taking turns ruling.
However, in a surprise showing of SYRIZA, the possibility of a Pact were thrown to chaos.
At best, that is likely to further delay new elections.
On the other hand, there is little time left in Greece. Any Government formed more delay will vote differently, very angry population, around next time you are at risk, not the European Union puts the next tranche of the bailout package.
It is now rather than leave Greece (or possibly pushed out of) the eurozone, currency and region in the State's southern tier in still greater uncertainty cast.
…What then?
While the current focus of concern Spain Italy renewed weakness is also on display.
Greece, Spain, Italy and Brussels, the ability of any debt problems which led to support packages. dwarf These economies are simply being rescued from the "external" is too large.
Infections can actually depart promptly Greece concerns, therefore, most thought possible before.
…Including me.
Leave the eurozone currency strength and all the members have a negative impact on the Economic Outlook. It is also evident in Spain or Italy, from how to Greece: crutch Each of these economic problems are endemic; They mainly do not result in a situation of Greece "spillovers".
All of the former United States Secretary of Defense Donald Rumsfeld to borrow a phrase from the known unknowns "means there are" now facing financial problems are essentially U series credit and this is part of the "known" of the equation. Overall, the euro has fallen much flowing through large scale computation is "unknown".
This, in two major economies using the euro on recent developments in Germany and France stand-by. All the European Union members about rescue package available without these two dominant European economic leadership. To date, the Paris-Berlin is a strong political undercurrent Germany production and trade of added protection, while the financial sector, stresses the protection of the suspect.
However, the recent election of a Socialist France and Germany's economy is slowing has been elected to the signs and are surfacing that face Greece questions "abstinence for remedies" approach will put continued support.
So far, all the major countries, strongly insisted that the euro's retention require that have led to the E.U. Greek approach. The dramatic political events unfolding in Athens to support is rapidly undermined.
And this has impact on the price of crude oil.
Like the oil market: 2008?
The only way of coming down the oil pressure is external (exogenous, analysts say) itself, the oil market.
This is what happened in 2008. Oil prices rose and gasoline, diesel, heating oil, which, like the spike in the cost of petroleum products had retreated to the credit freeze the entire weight is when the subprime mortgage leads.
Overall demand in the ensuing recession as a blow dryer.
We are concerned by the falling demand level confusion, parallel European prices for similar short-term withdrawal.
However, there are three important differences.
First, the United States economy is larger than itself (the world overseeing their a trader of j.p. Morgan) takes place on the continent.
Second, to determine the level of oil demand actually price will keep that part of the world. As I have said many times before, these are North America, Western Europe or developed (Agency OECD) countries. This development is based on the new economy different acceleration.
In addition, some importance is the third element of the.
2008 collapse and the dollar denominated assets, trading mainly with the primary assets of the global network of cross-border capital flows and a worldwide recession results-part I.
Not so for around an hour.
The current situation, the euro tends to benefit from the value of the dollar for. Almost all the international oil trade and the implications of the dollar will stabilize prices for a time. However, it also means increased assets focused on oil trading.
And despite the events in Europe and the ultimate value of the oil contracts, as well as increased demand and rising euro zone problems vital to-by direct impact occurs in that area of the world, especially in the market.
So say goodbye to Greece, Spain, good luck.
The dust settles once oil holdings will continue to rise over the next exhibit considerable value.
Dr. Kent Moors
Contributing editor, money morning
Oil and Greece's death
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