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Hazloc Heaters
Copper Tip Energy Services
Hazloc Heaters
Copper Tip Energy


Oil Holds Steady With Mounting Geopolitical Risks in Focus


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These translations are done via Google Translate
(Bloomberg) Oil in London traded near $88 a barrel as increasing geopolitical risks vied with broadly weaker equities markets.International benchmark Brent crude gained 0.3% after earlier climbing as much as 1.2%. Equities in Europe declined on Monday amid concerns over the U.S. Federal Reserve’s imminent rate liftoff, but oil continues to trade near its highest level since 2014.Crude’s rally has been buoyed by a combination of robust demand in the face of the omicron variant, while disrupted supply in countries including Libya has also tightened the market. That is now being compounded by heightened political risk as Russia amasses troops near Ukraine, and the United Arab Emirates comes under attack from Yemen’s Houthi rebels.

Oil has surged to the highest since 2014 as demand improves

“Given the geopolitical backdrop over the weekend with Russia-Ukraine tensions and the U.A.E. destroying ballistic missiles over Abu Dhabi, the geopolitical risk in the oil market continues to inch up,” said Keshav Lohiya, founder of Olytics.

GLJ
Prices
  • Brent for March settlement climbed 0.3% to $88.18 a barrel at 10:06 a.m. in London.
  • WTI for March delivery added 0.3% to $85.35 a barrel.

Despite the strength in crude, there are some signs that the recent rally could be growing increasingly stretched. Money managers hold more than 12 bullish bets for every bearish one in WTI, the most since November. Crude has also recently been on a run of being technically overbought.

GLJ
Related news:
  • Iran said a return to the nuclear deal was closer than ever, though progress is slow. The U.S. said a revival of the deal is unlikely if Tehran doesn’t release four Americans that Washington says are being held hostage.
  • Iraq said oil exports would stay steady this month and rise slightly in February.
  • Nigeria’s giant new Dangote oil refinery will start processing crude in the third quarter of this year. The country set the official selling price for Qua Iboe crude in February at $1.06 a barrel more than Dated Brent.
  • Mexico’s Energy Minister Rocio Nahle took to Twitter on Saturday, responding to media reports that the flagship Dos Bocas refinery project was over budget and won’t be finished on time.



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