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By Bloomberg

Oil fell for a fourth day as investors eschewed risky assets amid concern Greece’s failure to cut a deal with international creditors will prompt its exit from the euro area.

Futures dropped as much as 1.7 percent in New York. The euro slumped against the dollar as the government in Athens imposed capital controls and shut banks, moving to avert the collapse of the nation’s financial system. Diplomats in Vienna are close to clinching a deal to curb Iran’s nuclear program as a June 30 deadline approaches, according to Federica Mogherini, the European Union’s foreign policy chief.

Oil is headed for its first monthly decline since March as investors sought shelter in haven assets such as gold amid a deepening Greek crisis. Crude’s 10 percent advance this year has also encouraged U.S. producers and OPEC’s biggest members to pump at a record pace, signaling a global glut may persist.

“The most immediate impact from Greece is a stronger U.S. dollar,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “There is also the potential impact on demand from Europe as a consequence of reduced confidence.”

West Texas Intermediate for August delivery lost as much as $1 to $58.63 a barrel in electronic trading on the New York Mercantile Exchange and was at $58.74 at 12:15 p.m. Singapore time. Total volume was about 9 percent above the 100-day average. Prices have decreased 2.6 percent this month.

Cash Withdrawals

Brent for August settlement slid as much as 86 cents, or 1.4 percent, to $62.40 a barrel on the London-based ICE Futures Europe exchange. Prices are down 4.7 percent in June. The European benchmark crude traded at a premium of $3.70 to WTI.

Greece ordered banks to be closed until at least July 6, with a daily limit on cash withdrawals, according to a government decree. Prime Minister Alexis Tsipras on Friday called for a July 5 referendum on the austerity demanded by creditors, just days before the June 30 expiry of the current bailout and a $1.7 billion payment due to the International Monetary Fund.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its major peers, rose 0.4 percent to a three-week high. A stronger U.S. currency typically reduces the investment appeal of commodities.

Iran Talks

Diplomats from Iran and six world powers have shown the “political will” to finish drafting a long-term accord to limit the Persian Gulf nation’s nuclear activities, Mogherini told reporters Sunday after discussions with U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammad Javad Zarif.

Ministers from the six world powers -- the U.S., U.K., France, Germany, China and Russia -- will meet their Iranian counterpart again in Vienna once a deal has been drafted, Mogherini said.

Iran has estimated it could double oil exports from about 1 million barrels a day within six months of international sanctions being lifted. It’s currently the fifth-largest producer in the Organization of Petroleum Exporting Countries, whose 12 members supply about 40 percent of the world’s crude.

In the U.S., explorers seeking oil idled rigs for a record 29th week through Friday, according to Baker Hughes Inc., an oilfield-services company. The number of active machines dropped by 3 to 628, the fewest since August 2010. Still, a rebound in gas exploration drove the first increase in total drilling in more than six months.

Hedge funds were the least bullish on WTI in 10 weeks, cutting their net-long wagers by 1.3 percent through June 23, U.S. Commodity Futures Trading Commission data showed. Short bets climbed 8.9 percent.

The Chicago Board Options Exchange Crude Oil Volatility Index closed at 29.01 on Friday, signaling the lowest trading volatility since October. The gauge of hedging costs on the U.S. Oil Fund, the biggest exchange-traded fund tracking WTI futures, declined for a fourth week.