Oil prices continue to fall amidst lingering economic concerns in Europe, according to the Associated Press.
Although yesterday's election results in Greece have sparked optimism, uncertainty in countries such as Spain caused the price of benchmark oil to drop 75 cents to $83.28 on Monday. Meanwhile, Brent crude oil in London fell 94 cents to $96.67.
Additionally, heating oil dropped 1.47 cents to $2.6318 per gallon and gasoline futures went down 1.7 cents to $2.6840 per gallon, leaving some analysts to point to these numbers as even greater evidence of difficult times.
However, while conditions in some surrounding European countries may be a cause for concern, analysts believe that Greece's election results will provide some short-term relief, which could start pushing the economy back in a positive direction. The apparent victory by the New Democracy party looks to keep Greece's planned bailout measures on track, according to the news source. Many had prepared for the opposite results, which some say could have sparked a major European financial crisis.
"In the short term, the markets will be confident that the election result will give Greece some breathing room," said Jefferies Group strategist Sean Darby. "But longer term, investors cannot be assured that the political upheaval is over."
Analysts at JBC Energy in Vienna say that Greece will have to make proper political decisions if they truly wish to benefit from the election results and that there is no evidence to show that they are not out of the woods.
While analysts may disagree about future projections, most will agree with the idea that there is still much uncertainty. Therefore, it is important to remember that reports – whether they are positive or negative – do not always indicate similar market performance. Investors and financial advisors should examine the fundamentals of underlying stocks before investing.