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Oil struggles to correct after Monday's drop

Brent crude oil prices recover 1 percent, but still below the $60 mark.

By Daniel J. Graeber
Iranian Foreign Minister Mohamad Javad Zarif meeting in counterparts in Vienna to discuss status of Iran's nuclear program. More of Iran's crude oil could come to market if a deal is formalized by the end of the week. File photo by Maryam Rahmanian/UPI
Iranian Foreign Minister Mohamad Javad Zarif meeting in counterparts in Vienna to discuss status of Iran's nuclear program. More of Iran's crude oil could come to market if a deal is formalized by the end of the week. File photo by Maryam Rahmanian/UPI | License Photo

NEW YORK, July 7 (UPI) -- Crude oil prices were mixed in early Tuesday trading, with some corrections emerging after a major sell off greeted triple international market threats.

Major crude oil indices lost more than 5 percent of their value during Monday's session amid concerns about the long-term health of the Chinese economy, ongoing debt issues in Greece and the status of nuclear negotiations with Iran.

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West Texas Intermediate, the U.S. benchmark, was relatively flat in early Tuesday trading at $52.49 per barrel. Brent crude oil sold for $57.01 per barrel, recovering 1 percent from Monday's steep decline.

Crude oil prices are struggling to hold above $60 per barrel. Prices dropped far below the $100 barrel mark starting in June 2014 as supply far outweighed demand. Signs of a modest global recovery in early 2015 were weighed down in the latter half of the year amid widespread geopolitical concerns.

The British Foreign and Commonwealth Office issued a travel advisory Monday that warned of financial risks in Greece after voters decided overwhelmingly against an international bailout deal. The Greek economy cast a shadow over the last global financial crisis. The European Central Bank said it was mindful of the fiscal threats, deciding to maintain its level of emergency liquidity assistance to Greek banks.

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Talks in Vienna, meanwhile, are continuing for the second time beyond deadline to formalize a deal that would ease sanctions pressure on Iran in exchange for firm commitments to pull back from the nuclear brink. Another potential deadline is set to expire later this week.

Members of the Organization of Petroleum Exporting Countries vowed to maintain their production levels despite the glut of oil on the market. A survey from Platts finds OPEC production increased in June for the fourth straight month and more oil could find its way to the global marketplace if an Iranian nuclear deal is brokered in Vienna.

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