Home/Commodities/Newsfeed

Geopolitics Drive Oil Rise

Share Print 0

Brent crude traded near its highest closing level in almost two weeks as heightened tensions between Ukraine and Russia fanned concern that energy supplies are at risk. West Texas Intermediate rose in New York.

Brent advanced 0.3 percent in London. Ukrainian President Petro Poroshenko called an emergency security meeting to defend against what he called a Russian “invasion” after separatists gained ground in intensified fighting in eastern regions. In Iraq, Kurdish forces regained control of the Ain Zala and Batma oilfields during an offensive against Islamic militants.

“Geopolitical tensions are having an impact,” Hans van Cleef, energy economist at ABN Amro Bank NV in Amsterdam, said in a report. “Prices may not be increasing, but nor are they declining.”

Brent for October settlement gained 35 cents to $103.07 a barrel on the London-based ICE Futures Europe exchange at 1:09 p.m. local time. It closed at $102.72 yesterday, the highest since Aug. 15. The volume of all futures traded was about 27 percent below the 100-day average for the time of day. The European benchmark crude traded at a premium of $8.97 to WTI on ICE, compared with $8.84 yesterday.

WTI for October delivery rose 18 cents to $94.06 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 2 cents to $93.88 yesterday, the highest close since Aug. 21. Prices have slid 4.4 percent this year.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top