Oil rises on supply worries
01.21.2014
Brent Futures rebounded above $107/pb, and the WTI Crude Oil rose near$95/pb due to raising supply worries.
After Iran and the P5+1 group (the US, Britain, France, China, Russia, and Germany) have reached an agreement over Iran’s nuclear program, the investors turned to focus on concerns about shortage of supply due to the unrest in Iraq and Africa.
On the other hand, the oil disruptions from South Sudan and Libya are pushing the oil prices high. Despite that, Libya is planning to end the workers strike in the coming days and reopen the eastern ports of oil exports.
Furthermore, Brent crude is also advancing on signs that demand is increasing on economic recovery in many countries.
Meanwhile, the market and the oil investors are waiting for the supply report from the US Energy Department’s statistic on January 23.
We also noticed that the trading was less than usual, due to thin market liquidity because of the Martin Luther King Day holiday on Monday. Ahead of the American Petroleum Institute report due tomorrow.
Some geopolitical problems and tensions have provoked the
increase of oil. However, many analysts see that the Oil prices will remain
under pressure and may drop amid expectations that the Federal Reserve will
gradually end its bond-buying program during 2014.
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