Oil Prices Rise With an Eye to the Problems of Ukraine and Libya
Oil Prices Rise With an Eye to the Problems of Ukraine and Libya
Oil prices rise on the continuation of hostilities in Ukraine and confrontation in Libya, where the government seeks to resume production at the fields occupied by the rebels.
Yesterday morning, Brent futures rose to $ 110.63 per barrel, and futures for WTI to $ 104.41 per barrel. Due to geopolitical risks, the price of Brent rose more than 6 percent since the beginning of April, when were marked the lowest level since the beginning of the year - $ 103.95.
"Maybe we will not have to wait too long for enhancing oil market, because soon will be data that will estimate demand in the world's largest oil consumer." - said analyst Ben Le Brun.
Prior to the release of this information, both brands will be traded in the standard range of plus/minus 50 cents from current levels, thinks the analyst.
The newly elected president of Ukraine Petro Poroshenko rejected the possibility of talks with the terrorists in the east of the country and the national army began to use air strikes against separatists seized the airport in Donetsk as well as in other locations.
Oil prices have been underpinned by the threat of expanded Western sanctions over Russia’s role in the crisis in Ukraine, which is a key conduit for Russian gas deliveries to Europe.
The leader of the protesters in Libya, which have seized the oil ports, said he did not recognize the new government and that the agreement reached earlier on the resumption of ports may be canceled.
Expectations of easing policy from the European Central Bank, that will have a meeting next week, give additional support to the oil market. According to several sources, ECB may cut interest rates for the first time to lower the deposit rate below zero and implement targeted measures to stimulate small and medium enterprises.
If will be announced measures that help the economic growth of the eurozone, it would have a positive impact on the prices of Brent and WTI.
Resistance level for Brent is at mark of $ 110.99, and the price might fall back to $ 109.41 support level; a resistance level for WTI - $ 104,50-104,99, according to the calculations of Reuter technical analysts.
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