Oil prices stable despite Middle East violence
Crude oil prices have started bouncing back from lows due to geo political tensions in the Middle East even as increasing US inventory weaker demand for oil growth estimated by OPEC may curb upside gains in prices.
Israel attacked the Gaza Strip and the Israeli army said it called up reserves for a possible infantry assault on Gaza that would be the first since 2008.
Tensions are already high in the region as the Syrian conflict drags into its twentieth month. Energy markets have been on edge about the potential for greater supply disruptions in the Middle East this year especially as Western sanctions against Iran curb exports from the OPEC nation Reuters reported.
In electronic trading US WTI crude oil Dec futures at New York Mercantile Exchange rose to $86.31 a barrel. WTI crude oil is trading above 200 day moving average MACD is also in positive territory at 0.22 signalling positive movements ahead but resistance is seen at $88. 89 levels according to S reekumar Raghavan Chief Commodity Strategist at Commodity Online. Meanwhile Brent Crude oil has risen to $109.76 per barrel on Thursday.
Markets are awaiting the US crude oil inventories data and natural gas storage data for further cues. At India s Multi Commodity Exchange Crude Oil December contract rose 0.15% to Rs 4802 per barrel on Thursday. On daily charts crude oil seems to have bottomed out at Rs 4650 levels and marching upwards but could face resistance at 4850 levels and subsequently at 4950 levels Sreekumar Raghavan said. Weak Rupee could impact domestic prices as the nation depends on imports to fill a major chunk of its energy requirements.
- Egyptian stocks plummet as Yemen confict deepens
- Mission to Mars: UAE plans Arab region's first unmanned probe
- Supervising the stoners: Egyptian tobacco traders call for the legalization of cannabis
- Ethiopia launches $2.8m research survey for Nile basin development
- UAE sweetens flotation regulations to attract more investment