Oil prices weakened on Tuesday for a fifth day running as Greece’s post-election uncertainty added to signs of economic slowdown on both sides of the Atlantic and fanned concerns about weakening demand for petroleum as supply increases. But crude futures, the euro and U.S. stocks all pared losses after initially dropping sharply on news that Left Coalition leader Alexis Tsipras will not cooperate with Greece’s two main parties unless they renege on pledges made to abide by a bailout deal made with the European Union and the International Monetary Fund. “Failure to take out Monday’s lows caused the shorts that had piled in the market to turn,” said Gene McGillian, analyst, Tradition Energy in Stamford, Connecticut.
Tuesday’s pared losses still left Brent down 5.79 percent over five sessions, with U.S. crude off 8.62 percent, the biggest five-day percentage losses since October. Oil prices also felt pressure early after Saudi Arabian Oil Minister Ali al-Naimi said the kingdom’s output was around 10 million barrels per day (bpd) and that the world’s top exporter was storing 80 million barrels in case of any disruption in supplies.