|News||Crude rallied amid optimism in Europe and fears over its supplies|
|Analysis||Crude oil rose significantly in the past day reaching so high levels as many positive factors are providing the commodity with an upside momentum, as it benefitted yesterday from optimism wave in Europe after finance ministers approved to give Greece 130 billion Euros, along with the effect from Iran which considering to cut more oil exports to EU.|
Crude oil opened today’s session at $105.19 and reached a high of $105.42 and a low of $104.83, where it is currently trading around $105.28 a barrel.
Yesterday, crude oil reached the high of $ 105.77 which considered a very high level, but it deserves it indeed amid all fears that surrounding the global supplies of the commodity, especially with escalating tensions between Iran and the west.
Euro finance ministers agreed yesterday on the second bailout that worth 130 billion Euros to Greece after a very long negotiations, which injected hopes and optimism in financial markets and encouraged investors indeed, as this money will prevent Greece from falling into default hole as soon as 20 March.
This approval has pushed financial markets and relieved investors after they were tensed over the future of Greece and whether the country would default or not, where investors are not just worried over Greece but they fear from the contagion which will penetrates into other debt-laden nations.
Moving to the other major factor that behind high oil prices, we can take a look on Iran-west situation, as escalating tensions between both is pushing crude strongly upwards, as Iran did not satisfy in just cutting oil exports to UK and France, where the country is considering cutting oil exports to other European countries including Spain, Netherlands, Greece, Germany, Italy and Portugal, according to Iran’s deputy oil minister.
The United Nations is taking an effort to halt all these escalating tensions between both parties, as the team of investigators started two days-meetings in Iran, offering Tehran a chance to stem speculation that its nuclear program will spark a military conflict, which if occurred, we will see a much more higher oil prices.
Looking at Sudan’s situation which also adding fears over global oil supplies after South and North Sudan conflicted on oil reserves and pipelines ending in shutting oil production of South Sudan, this south nation is now considering building a new pipeline for its oil production and avert any conflict between the other one.
In general, the upside momentum the put crude around these high levels eased today but the commodity remains biased to the upside amid optimistic investors in Europe, and fears over global oil supplies, but volatility will be high today on crude’s trading due to these high levels that will be highly countered by different factors.