Oil traded flat Monday as desperate hopes for Greece to avoid a near-term bankruptcy brightened the outlook for oil demand from Europe, while violent protests in Egypt reignited supply concern.
The Euro Politicians are yet again due to try to hammer out a deal to get international lenders to release emergency aid to Greece before its next debt repayments.
German Chancellor Angela Merkel said she was confident a deal could be reached, while the French finance minister said an agreement was close.
German business sentiment surprised with a rise in November, breaking a six-month run of declines. The closely watched Munich-based Ifo think tank said its business climate index rose to 101.4, beating forecasts.
However, a regional Spanish election which favored separatist parties raised concern about a negative impact on the Spanish economy and its fiscal conditions, and in turn, oil demand.
On Friday, the contract rose 90 cents to close at $88.28 a barrel on the Nymex after Israeli troops fired on crowds in Gaza surging toward a border fence, killing one Palestinian.
Prior to the shooting, oil prices had been falling, thanks mostly to optimism that the cease-fire agreement between the two sides would prevent a broader conflict in the region that could disrupt crude supplies. The truce was struck last Wednesday to end to an eight-day Israeli offensive against Gaza militants who had fired rockets into Israel, but remains fragile.
Shayne Heffernan Recommends: LONG positions above 87.4 with 88.6 & 89.15 in sight.
Beware: The downside penetration of 87.4 will call for a slide towards 86.2 & 85.15.
Comment: technically, the RSI is above its neutrality area at 50.
Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service
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