Relaxing concerns about Greece's downward spiral toward defaulting on repaying bailout funds pushed up oil futures on Tuesday, Bloomberg reports.
A government report is expected to show stockpiles of the energy commodity fell for a third straight week, another factor that benefits oil futures. A Bloomberg survey of 12 analysts predicted the U.S. Energy Department's report will show an inventory fall.
"There's a little bit of optimism leading back into the market and the chances are that the Greece concerns will probably be solved some way," Jonathan Barratt, managing director of Commodity Broking Services in Sydney, told the news service. "We feel oil is due for a bit of a bounce."
At 4:01 p.m. on Tuesday, crude oil futures were down 1.15 percent, a $1.29 reduction to $110.40 per barrel.
Many aspects of the market are hinging on what happens next with Greece, a PFGBest analyst told Dow Jones Newswires. The Greek prime minister is facing a confidence vote and the nation also is forced to confront how it will handle repayments of the June 2010 bailout package while also waiting on another tranche.
A reduced demand from the U.S. also impacted the price of oil, Dow Jones Newswires reports.