|Analysis||Crude oil struggles to correct yesterday’s losses as the Iranian issue remain the main factor behind the rise in crude prices, where OPEC will not intervene to stop the conflict between Iran and the west, which raised the fears over oil supplies.|
crude oi opened today's session at $101.29 and reached so far a high of $102.52 and a low of $101.22, where it is currently trading posatively around $102.45.
The Iranian leader met yesterday with the Venezuelan president to discuss the situation in oil market, where the Venezuelan oil minister said that OPEC will not get involved in the issue with Iran, which added fears over crude supplies.
As we know, Iran threatened to close the Strait of Hormuz and stop any oil flow through the Strait if new sanction from US and their allies were imposed on Iranian oil exports, which triggered fears in oil markets that global oil supply will get hurt if such a thing happens.
On the other hand, a delay occurred on the construction of a pipeline is being established in UAE to avert shipping oil from Abu Dhabi to the world through the Strait of Hormuz, where the UAE’s minister of Energy said The pipeline is almost complete, but hopefully it will be operational within six months.
In Europe, many meeting between leaders are going to happen or actually happened, as the German chancellor Merkel and the French president Sarkozy met yesterday to come up with the one stance, and in a joint statement they that the second Greek aid package including this restructuring must be in place quickly. Otherwise it won't be possible to pay out the next tranche for Greece.
Also, Merkel and the IMF’s chief are willing to meet today in order to discuss the situation in Europe and how to get the region from its debt crisis, where hopes appeared in the continent that leaders should stand at the same positions on how to resolve the crisis and to have the same opinions ahead of the summit which will be held at the end of this month.
The European Union is kind of taking serious measures, as it sold 3 billion euros of 30-year bonds in order to help each of Ireland and Portugal to get over their debt problems, which is the first deal by the 27-nation bailout fund in more than three months.
China is the world’s second biggest oil consumer; released data today showed that oil imports gained 6% to 253.78 million metric tons last year, according to the General Administration of Customs, compared to imports that rose 17.5% in 2010.
Goldman Sachs predicts that oil would rise significantly this year, as a statement showed that Oil amid the current environment, tight fundamentals, the current geo-political situation in Iran, creates massive upside price risk relative to our target.
Volatility will appear on oil trading today ahead of a meeting between Merkel and Lagarde to discuss the current situation in the Euro zone, and how to solve the crisis that hit the growth in the region and hurt the economy strongly.