NYMEX crude falls in early Asia with investors focused on geopolitics

Investing.com - Crude oil prices dipped in Asia on Tuesday with investors less focused on supply/demand figures due later on U.S. stockpiles as geopolitical concerns from Greece to Iran.

A last-minute series of phone calls and offers failed to reach a breakthrough on Greece's debt package by early Tuesday in Asia, setting the stage for volatile markets.

Talk swirled about the outcome of a planned July 5 referendum with Greece's Prime Minister Alexis Tsipras hinting Monday he might resign if the Greek people vote in favour of the creditors' proposal.

"If the (Greek) people vote yes, then the referendum outcome will be completely respected but I will not serve it," Tsipras said in a television interview. "I'm not an all weather prime minister. I will respect the verdict and prepare the ground as outlined by the constitution and the parliament."

Earlier in the day on Monday, President Barack Obama spoke to France's President Francois Hollande, urging renewed efforts to reach a deal, and then European Commission President Jean-Claude Juncker reportedly made a refined proposal that was rejected by the Greek government with the current bailout due to expire June 30 and no extension on offer.

On the New York Mercantile Exchange, WTI crude for August delivery fell 0.13% to $58.26 a barrel.

On Tuesday, the American Petroleum Institute will release its survey of U.S. crude and refined products stocks at the end of last week. The data is followed Wednesday by more closely-watched figures from the U.S. Department of Energy.

Overnight, crude futures fell sharply on Monday plunging to monthly low, as stalled negotiations regarding the Iranian Nuclear deal and the Greek Debt crisis continued to weigh.

On the Intercontinental Exchange (ICE), Brent crude for August delivery dropped $1.28 or 2.02% to $61.98 a barrel on Monday.

In Washington, White House press secretary Josh Earnest told reporters it is likely that negotiations with Iran aimed at reaching a final agreement on a comprehensive nuclear deal will likely extend past Tuesday's deadline.

The two sides reportedly remained at odds on the pace of easing longstanding economic sanctions once a deal is reached. U.S. president Barack Obama has until July 9 to present the deal to Congress for review. Western powers would like the sanctions against Iran to be removed gradually, while Iran president Hassan Rouhani has argued for immediate removal of the crippling restrictions.

An easing of sanctions is viewed as bearish for crude, as a deal could enable Iran to release millions of barrels of crude reserves into a global market already saturated by excessive supply. Iran reportedly has 30 million barrels of crude in reserves ready for export once the sanctions are lifted.

While Opec supply has reached record-highs throughout 2015, its market share has been dented due in part to a surge in U.S. shale production over the last year.

Last year, Opec's global market share fell to 41.8% from 43.3 in 2013, representing its lowest share since 2003, according to Bloomberg. In spite of steady declines throughout the spring, U.S. crude output moved back above 9.6 million barrels per day last week, bolstered by a 76,000 gain among the lower 48 states.

Energy traders remained focused on the impact of currency fluctuations on the price of crude, amid debt crises in Greece and Puerto Rico.

Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.

Germany chancellor Angela Merekel reiterated the importance of holding the euro together if Greece leaves the area, while adding that the euro zone is in better position to cope with contagion than it had been during a previous Greek debt crisis several years earlier.

Earlier, a Greek government official reportedly said that Athens will not make a €1.6 billion repayment to the IMF on Tuesday, a bundled payment of four loans it owed during the month of June.