Cruse oil for July delivery have spiked by almost two dollars to levels just below US$77 on the Nymex as the euro rose vs the dollar though Moody's Investors Service slashed Greece's credit rating to junk status on Monday. Though the negative impact of news on economic slowdown and deteriorating credit ratings is diminishing, it is are likely to prevent a further rally of oil prices. Crude prices rose as stock markets rose, and investors await statement on what BP would do about future dividends and the oil spill in the Gulf of Mexico.
Even as BP deliberates to suspend or cut Q2 dividend until cost of the oil spill is clearer, BP executives and President Barack Obama meeting to discuss the Gulf spill, is to be followed by CEO Hayward appearance to testify before a congressional panel on Thursday. The White House is pressuring BP to set up a fund to compensate victims of the spill. Energy prices could be affected by the outcome.