Oil
US crude futures hit a 2 1/2 year high, touching $94.49 a barrel, it's highest since October 2008. On Monday, Brent crude prices hit a 2 1/2 year high of $108.70. It's all due to geopolitical risk in the Middle East, including more recent events in Libya. Looking to possibly take advantage of the instability in some way, Iran sent two naval vessels through the Suez Canal to the Mediterranean. This obviously has Israel concerned which depends on a long-standing peace agreement with Egypt for regional security.
The oil markets are concerned about possible contagion and supply disruptions, especially out of Saudi Arabia, where protests so far have been low key; and Saudi Arabia has said it won't necessarily increase production to offset supply disruptions elsewhere. From a technical perspective, US crude prices were also boosted as traders rushed to cover the short positions in the Brent/WTI spread which had blown out to a record $16 per barrel last week.
GB
The oil markets are concerned about possible contagion and supply disruptions, especially out of Saudi Arabia, where protests so far have been low key; and Saudi Arabia has said it won't necessarily increase production to offset supply disruptions elsewhere. From a technical perspective, US crude prices were also boosted as traders rushed to cover the short positions in the Brent/WTI spread which had blown out to a record $16 per barrel last week.
GB
posted by Gordon Bell at
6:03 AM
0 Comments:
Post a Comment
<< Home