Oil price below $99 in Asia on Greece debt issue

Oil dropped under $99 a barrel today in Asia amid new issues that Europe may reject to grant Greece a new bailout.

Benchmark crude for March delivery was below 59 cents at $98.97 a barrel at late daytime Kl time in electronic trading on the Ny Mercantile Exchange. The deal fell 14 cents to end at $99.56 on Friday.

Victor Shum, an energy expert with Purvin & Gertz in Singapore, says crude rates were volatile after Germany’s financial minister informed that Europe might not give Greece a new bailout until it can overhaul its state and economic system. Experts concern that could reignite the region’s debt disaster.

European administrators were to meet later Monday in Brussels to talk about austerity steps and a tentative contract reached Saturday between Greece and its private investors to avert a devastating Greek default on its debt.

Shum says supply issues also weighed on the market although Iran has delayed intends to instantly cut the flow of crude oil to Europe in retaliation for EU sanctions over its atomic program.