Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

US crude futures climb back into positive territory

by Staff GBAF Publications Ltd
0 comment

US crude futures climb back into positive territory

By Erwin Seba

HOUSTON (Reuters) -U.S. crude futures returned to positive territory on Monday after falling on easing fears of a wider Mideast conflict.

U.S. West Texas Intermediate crude was up 0.03 cents or 0.04% at $83.17 a barrel at 9:46 a.m. CDT (1446 GMT). The front-month WTI crude contract for May expires on Monday.

Brent crude futures were down 48 cents, or 0.55%, at $86.77 a barrel.

Both benchmarks had been down more than $1 a barrel. Early on Friday, prices for WTI and crude climbed than $3 a barrel, after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack.

Gains dissipated after Tehran played down the incident and said it did not plan to retaliate.

Geopolitical risk premiums tend not to last if supply is not actually disrupted, said UBS strategist Giovanni Staunovo, adding that the high spare capacity of a few oil-producing countries could compensate for any supply disruptions.

The market reaction to the rising geopolitical temperature was another example that it is only reasonable to expect a protracted oil rally if the Strait of Hormuz- the world’s most important oil artery – was disrupted or Saudi Arabia directly drawn into the conflict, noted Tamas Varga of oil broker PVM.

Meanwhile, plentiful supplies of some of the biggest crude grades are limiting the impact on oil futures of conflict in the Middle East, a Reuters analysis found.

On the economic front, inflation is back in focus, with comments from Federal Reserve officials and a run of hotter-than-expected inflation data forcing a paring back of rate cut expectations last week.

Economic concerns have again become a bearish factor of the crude market, with prices under pressure due to a large build in the U.S. stockpile and a hawkish Fed that has led to a strong dollar, said independent market analyst Tina Teng. [EIA/S]

A strong dollar makes oil more expensive for holders of other currencies. [USD/]

(Reporting by Erwin Seba; [email protected]; Additional Reporeting Deep Vakil in Bengaluru, Natalie Grover in London, Colleen Howe in Beijing and Jeslyn Lerh in Singapore; Editing by Louise Heavens, Alex Lawler, Bernadette Baum and Alexander Smith)