Oil Stable Despite Russian Unceirtanty

Brent swung between gains and losses amid speculation that supplies from Russia, the world’s biggest energy exporter, will be unaffected by the downing of a Malaysian Air flight. West Texas Intermediate rose.

Brent futures were 0.1 percent lower in London after falling 0.6 percent on July 18. President Vladimir Putin faces pressure to respond after U.S. Secretary of State John Kerry said there’s “extraordinary circumstantial evidence” that Russia provided the missile that Ukrainian rebels used to bring down Flight 17. Money managers cut bullish bets on WTI by the most since March 2013, Commodity Futures Trading Commission data show. Libya is preparing to export crude from two eastern ports that reopened this month after a yearlong protest.

“Oil prices have come down once again due to a limited response so far to the MH-17 airline disaster,” Abhishek Deshpande, oil markets analyst at Natixis SA in London, said in an e-mail. “The fundamentals are clearly pointing towards sufficient supply of oil with the return of Libyan oil.”

Brent for September settlement was at $107.09 a barrel on the London-based ICE Futures Europe exchange, down 15 cents, at 1:34 p.m. London time. The contract dropped 65 cents to $107.24 on July 18. The volume of all futures traded was about 11 percent below the 100-day average for the time of day. Prices are down about 3.4 percent this year.

WTI for August delivery, which expires tomorrow, rose 30 cents to $103.43 a barrel in electronic trading on the New York Mercantile Exchange. The more-active September future was 4 cents higher at $101.99. The U.S. benchmark crude was at a discount of $5.07 to Brent.

via Bloomberg

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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