NYMEX crude eases in early Asia as Greece talks reach impasse on bailout

Investing.com - Crude oil prices eassed Tuesday in Asia ahead of U.S. supply data later in the week and as investors eyed talks between Greece and euro zone finance ministers that broke down overnight when Athens rejected a proposal to request a six-month extension of its international bailout as "unacceptable".

The unexpectedly rapid collapse raised doubts about Greece's future in the single currency area after a new leftist-led government vowed to scrap the 240 billion euro bailout, reverse austerity policies and end cooperation with EU/IMF inspectors.

Dutch Finance Minister Jeroen Dijsselbloem, who chaired the meeting, said Athens had until Friday to request an extension, otherwise the bailout would expire at the end of the month.

Greece’s current €240 billion bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.

Greece's Finance Minister Yiannis Varoufakis said Monday that he was ready to sign a document drafted by the European Commission, which outlined a deal between Greece and its partners.

However, Varoufakis said, Eurogroup President Jeroen Dijsselbloem presented him with another document, which referred to past policies and was vague in key issues such as "flexibility", which he could not accept.

Data normally released Tuesday on U.S. supplies of crude and refined products will be delayed by a day because of a U.S. public holiday on Monday. Related U.S. Department of Energy figures normally released on Wednesday will be issued on Thursday this week.

On the New York Mercantile Exchange, crude oil for delivery in April fell 0.08% to trade at $53.63 a barrel.

Overnight, oil futures swung between gains and losses in choppy trade on Monday, with volumes expected to remain light as markets in the U.S. remain closed for the Presidents' Day Holiday.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery tacked on 7 cents, or 0.11%, to trade at $61.59 a barrel on Monday, after rising to a session high of $62.57, the strongest level since December 22.

Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Elsewhere, in Japan, data on Monday showed that the economy emerged from recession in the final quarter of 2014, but growth was still weaker than expected, indicating that the recovery remain fragile.

Japan’s economy expanded at an annual rate of 2.2% in the three months to December official data showed, falling short of forecasts for 3.7%.