|News||Crude oil retreats amid high uncertainy|
|Analysis||Crude oil struggles today with a downside bias after yesterday's significant inclines on fears over global oil supplies, where uncertainty at the current time is driving crude to the downside erasing some of yesterday's gains.|
Crude oil opened today's session at $108.93 and reached so far a low of $107.84 and a high of $109.00, where it is currently trading around $107.99 a barrel.
The Iranian media reported that a pipeline explosion in Saudi Arabia, which triggered fears and concerns over the country's oil supplies which may covers any shortage from Iranian oil production, and took oil prices sharply to the upside achieving very high levels reaching a high of yesterday's session at $110.53.
However, Saudi's officials denied these reports calling it spurious, which eased fears that were in financial markets and pulled the commodity back into its previous positions around $108.00.
Crude oil is currently facing a downside pressure from uncertainty that seen in financial markets amid the summit of leaders which is taking place now, this uncertainty was derived from the leaders which put off a discussion over enhancing the firepower of the permanent and temporary emergency funds.
But leaders have accelerated the measures of the funds as it could be starting with the payment of two tranches in 2012 but we have to take a definite decision.
In general, volatility will be so high today where investors will be focusing on EU leader's summit and any comments from leaders would be taken into consideration from investors.
Also, eyes will be headed on Iran-West situation and Saudi Arabia which joined the team after these reports on its oil production, any developments in the matter will be reflected on oil trading.