NewsOil is trying to reach $103 amid hopes in Europe
AnalysisCrude oil climbed higher at the end of the week recording new highs, as today it continued the upside wave which begun with  the start of the week to reach slightly below $103, supported by optimism in Europe that ministers would sign off a bailout plan for Greece on Monday, and rising tension in the Middle East.

Crude oil opened today’s session at 102.32 and reached a high of $102.92 and a low of $102.22, where it is currently trading around $102.66 a barrel.

Crude oil has benefitted significantly from hopes in Europe that Euro finance ministers would sign on a plan that would secure Greece a 130 billion Euros if they avoid splitting bailout into parts as previous reports said. However, the agreement of Greek parties on all the terms of the bailout have raised hopes that ministers would approve on the bailout on Monday.

This optimism in markets pulled the dollar down on the back of a stronger Euro and pound, and this weakening dollar has pushed crude strongly upwards to the highest in several weeks. 

The USDIX which tracks the currency against a basket of major currencies declined sharply yesterday on signs of hopes in Europe, as it retreated from the high of 80.11 to close the session at 79.38, where today it is trading around the opening level at 79.37.

Mores support was offered from fears over oil supplies, as Iran is considering huge cuts in oil exports to European nations before an embargo from the EU starts in July, which scared the market if these nations couldn’t quickly find an alternative source to meet their oil demands.

Nonetheless, Taiwan is considering cutting its oil imports from Iran in order to satisfy its allies that are trying hard to choke off Iran's oil revenue due to stop the nation's nuclear program.

In fact, tough sanctions on Iran would not just hurt the Iranian economy, but it will affect the global economy badly, as fears now on oil supplies would double crude prices which will have a very bad effect on global economy and major economies and destabilize prices in the economies.

In general, crude trading will be volatile today as it is the end of the week and investors would likely close their positions avoiding any unexpected losses, especially that finance ministers would meet on Monday and any changes in decisions would change the market’s direction