|News||Crude is volatile amid mixed factors|
|Analysis||Crude oil struggles for the second day with high volatility in its trading, where fears and concerns remain evident on the Iranian issue as Israeli PM met yesterday with U.S. President but with no signs of any military intervention at the current time, which relieved tension on global oil supplies.|
Crude oil opened today’s session at $107.09 and reached a high of $107.27 and a low of $106.49, where it is currently trading around $106.81 a barrel.
The commodity is biased to the downside at the beginning of today’s trading trying to erase some of yesterday’s gains, as pressure eased between Iran and the west after yesterday meeting that showed US king of opposing position to intervene militarily in Iran as the U.S. President preferred tougher sanctions on the country before take any military action.
Despite Obama’s stance that goes for tougher economic sanctions on Iran instead of a military intervention as Israel calls, but the International Atomic Energy Agency (IAEA) expressed its concerns over U.S. President Barack Obama comments, as he told Israeli Prime Minister yesterday that his country has Israel's back and would not let Iran get nuclear arms.
Volatility is evident in crude’s trading ahead of heavy data from the Euro Zone which will release its preliminary reading for 4Q GDP, which is expected to confirm the contraction by 0.3% that been showed by the previous reading.
The recent relief that seen in financial markets couldn’t cover fears and concerns that surrounding the continent which filled with fears and hopes to get out safe from this harmful debt crisis which hit the economy and halted the pace of growth.
Dear reader, we note here that hopes in Europe are not the reason behind these high oil prices, but fears and concerns over global oil supplies especially Iran is the reason that took the commodity to incredible prices that couldn’t achieve for a while.
In fact, Iran is playing with oil prices nowadays, as if tensions increased between the country and the west we would see a strong upside momentum that pull crude to the upside, and if not, we can see this upside momentum fades and the commodity would dips to the downside.
Fluctuations and volatility will dominate crude’s trading today as we said ahead of heavy fundamentals from Europe and empty agenda from the States the triggers volatility and keep eyes headed to Europe.