Crude & Brent Oil Weekly Fundamental Analysis July 21 – 25, 2014 Forecast Crude Oil gained at the end of the week to trade at 103.17 while Brent Oil eased most of the week to close at 107.98. Oil prices rose after a Malaysia Airlines plane came down in war-ravaged Ukraine and Israel launched a ground offensive into Gaza, sparking fears about tensions in the crude-rich Middle East. Speculation that flight MH17 with 298 people aboard was shot down by pro-Moscow separatist rebels in Ukraine has fuelled concerns of an escalation of the conflict as well as intensified US sanctions on Russia, CMC Markets in Singapore said. “Oil prices rose as fears over intensified sanctions on Russia risked a tit-for-tat situation which may affect supplies from the (world’s) second largest crude oil producer,” it said in a commentary. Ukraine is also a major conduit for Russian gas exports to Europe. Ukraine’s government and western leaders have accused Russia of supporting the separatist rebellion in the country’s east, but Moscow has denied the allegations. Investors are also keeping a wary eye on events in Gaza after Israel began a ground operation late Thursday. “Geo-political risks took a grip on the financial markets… With (the) shooting down of the Malaysian Airlines passenger jet near the Ukraine-Russia border and Israel continuing its offensive in Gaza,” United Overseas Bank said. Historical: From 2011 to Present Highest: 110.55 on Mar 01, 2012 Average: 93.60 over this period Lowest: 74.95 on Oct 04, 2011
Posted on: Sun, 20 Jul 2014 18:16:28 +0000