Oil price declined more than $1 to below $62 per barrel on Monday over worries on Greek crisis.

Brent crude slipped $1.36 at $61.90 a barrel, while the US crude declined $1.25 at $58.38 a barrel, Reuters reported.

Investors tried to sell off riskier assets as the country closed its banks and imposed capital controls in a bid to keep banks from collapsing.

"This may be the time when we break lower and into the $50s for Brent as we have a full week of uncertainty."

Following news on failure of the bailout talks that took place between the government and foreign creditors, the European Central Bank decided not to extend funding to Greek banks.

The decision came after the failure of talks with Greek creditors with regard to proceeding with the bailout programme.

Analysts said that the situation in Greek does not look optimistic until a referendum at the weekend on whether to accept conditions for a bailout, which is likely to hit oil prices.

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SEB commodity analysis head Bjarne Schieldrop told the news agency: "This may be the time when we break lower and into the $50s for Brent as we have a full week of uncertainty."

Oil prices during the week also may be affected based on negotiations on Iran’s nuclear programme.

Should the Iranian Government secure an agreement with world powers, this would put an end to the nuclear standoff between Iran and the West and allow Tehran to boost crude exports.