Asia markets' Grexit bloodbath: Latest on stocks, FX, commodities

[Yo_Mama]

31. Much of this has little to do with Greece. No one's saying "China", because that's the elephant

in the damned room. China's ongoing equity meltdown is shaking people.

The impending Grexit is shaking things up, but US crude fell partly on sentiment but more on rising output and now a rising rig count being reported. With the Euro not being that favored, hedging the dollar in crude doesn't work very well for anyone. But the Euro/USD is roughly stable - what's moving WTI are production that was reported at 9,600,000 last week (when US production was predicted to peak at 9,200,000), plus news that US rigs were now rising:
http://economictimes.indiatimes.com/markets/commodities/oil-prices-drop-on-rising-us-rig-count-china-stock-market-probe/articleshow/47919592.cms

So it's a losing trade.

If China is in trouble, and it most certainly is, then hopes for a large rise in demand must dim, and that means that increases in US oil production will bring crude prices down.

Also, it should be obvious that if US producers are able to continue raising production with prices below $65, their production costs have fallen significantly, and it is estimated that a lot of these producers can now make decent money at $45-50.