WTI crude hovers around $110 with Syria developments in focus . . . . . . . WTI crude oil futures traded slightly lower in early hours Monday below $110 per barrel as investors cautiously eye developments on Syria, holding onto to the sharp Friday rally as futures rallied to the highest close since May 03, 2011. The market remains tensed and fears of the military strike on Syria are keeping oil traders on the edge, fears over supply disruptions from the Middle East oil rich region, and as well an impending threat to the fragile global recovery. -WTI crude futures for October settlement is trading lower 0.46% around $110.02 -Brent futures for October is also trading lower 0.36% at $115.72 Slight profit taking has been seen in early hours in Asia this morning as investors assess the expected position from Washington, nevertheless, a selloff is not expected before the final vote from Congress shall they dismiss a strike on Syria. Some U.S. lawmakers already said they will not back the proposal to strike Syria where the U.S. Senate is expected to vote on the resolution for a strike by the end of the week as they begin the discussions today. The G-20 Summit in St. Petersburg widened the rift among leading powers with Russia’s Putin warning the U.S. again of unilateral action without UN approval, assuring he will assist Assad and continue to send aid. China also urged the United States Monday to address the matter with caution and return to the United Nations to discuss Syria. Obama said on Friday at the G-20 press conference that we will address the U.S. nation on Syria on Tuesday November 10. The profit taking after Friday’s rally is normal as investors wait for a decision on Syria, but we still expect oil valuations to remain high and any drop to remain merely correctional for now with crude holding around $110. Dips toward $108.50-00 regions is still a buy and even below toward $105 regions will still maintain the bullish bias and below $103 will be the start of alarm for bulls. Asian stocks supported oil and limited the downside correction, Japanese stocks rallied on the back of Tokyo winning the Olympics bid alongside side some good Chinese economic data offsetting slightly the impact of the drop in crude imports from the nation. Chinese imports of crude dropped to a six month low of 21.43 million tons in August, down 17.9% from the previous month due to the shutdown in most refineries for repairs at this time of the year. Vigilant trades will be seen this week and with Syria still the focus for commodity traders. #egyptyard
Posted on: Mon, 09 Sep 2013 09:22:04 +0000
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