Oil prices drop to lowest level in almost three months

Oil prices are continuing their downswing as the new week of trading gets underway. Brent has dropped below the $60 per barrel mark, putting it at its lowest level since mid-April. 
WTI shed nearly 4% for a time to hit $54.5 per barrel likewise nearly a three-month low. Several factors at once have been putting oil prices under pressure: the resounding "No" vote of the Greek people to further austerity measures and the further fall in Chinese equity markets have resulted in higher risk aversion, which weighs on risky assets and by extension crude oil investments. 

According to the CFTC, speculative net long positions in WTI were reduced by 14,800 contracts in the week to 30 June. At a good 221,000 contracts, however, they still find themselves at a comparatively high level, meaning that there is still potential for correction here, says Commerzbank.