3 Jul 2013
Oil goes ballistic, highest at 102.00
FXstreet.com (Barcelona) - Price in the west Texas intermediate crude future contract for August continues its relentless rally along Asian hour, last trading at 101.81 after a peak at 102.00, highest since May 4 2012.
Fears of supply disruption on Egypt
Traders appear to be pricing in potential disruptions to supplies in the Middle East after the Egyptian President Mohammed Morsi vowed to stay in power and fight a growing public opposition. Amid the escalating violence, and pressures from the military for the President to satisfy part of the protesters' demands, the tension is on the rise. According to the Associated Press, there is the possibility that the military acts to force a new leadership.
U.S. demand increase weighing too
Furthermore, an increase in the projected demand for Oil out of the U.S., following a sharp drop in U.S. supplies, has also acted as another catalyst inflating the price of Oil. Now traders will keep an eye on the latest weekly report from the Energy Department's on U.S. stockpiles of crude oil.
Fears of supply disruption on Egypt
Traders appear to be pricing in potential disruptions to supplies in the Middle East after the Egyptian President Mohammed Morsi vowed to stay in power and fight a growing public opposition. Amid the escalating violence, and pressures from the military for the President to satisfy part of the protesters' demands, the tension is on the rise. According to the Associated Press, there is the possibility that the military acts to force a new leadership.
U.S. demand increase weighing too
Furthermore, an increase in the projected demand for Oil out of the U.S., following a sharp drop in U.S. supplies, has also acted as another catalyst inflating the price of Oil. Now traders will keep an eye on the latest weekly report from the Energy Department's on U.S. stockpiles of crude oil.