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Crude oil dropped yesterday for a second consecutive day on concerns about Greece defaulting on its debts and rising US crude stockpile levels signaling a weakening demand in the US. WTI crude futures fell by 0.14 percent to USD $ 97.23 a barrel, while Brent crude futures fell by 0.28 percent to USD $ 110.53 a barrel.

Yesterday, European finance ministers meeting in Luxembourg accepted to consider talking with Greece’s s bondholders about a restructuring of the country’s debt. The stimulus of 110 billion euro which Greece had received last year as part of its stimulus package has been unable to improve the country’s economy. Talks about restructuring Greece’s debt can be taken as signs that the country might default on its payments in the near future. Such a move would be disastrous for the Euro Zone, dragging down the hard work done by economies registering good performances such as Germany, and this would ultimately translate into a recued demand of oil from the region.

Meanwhile, it is also estimated that the US crude stockpile levels have risen from 370.3 million barrels by 1.5 million barrels. A rising of US crude stockpiles signals a weak economic recovery in the US, leading to a reduced demand of oil and hence lower prices.