Reuters - Crude oil prices rose to 2-1/2 year highs on Monday on heightened worries about supply disruption due to deepening unrest in Libya, while Asian stocks slipped as concerns about the Middle East and higher energy prices weighed on equities.
HONG KONG (Reuters) - Crude oil prices rose to 2-1/2 year highs on Monday on heightened worries about supply disruption due to deepening unrest in Libya, while Asian stocks slipped as concerns about...
Oil prices fell on Monday as concerns about Greek debt talks and U.S. budget negotiations outweighed worries about potential Middle East supply disruptions.
After the U.S. Thanksgiving holiday muted activity late last week, the market dipped in another day of light activity as U.S. lawmakers showed little progress toward a compromise designed to avoid mandated tax increases and government spending cuts scheduled for Jan. 1.
Easing geopolitical tensions, improving crude supplies and tepid demand growth are expected to push oil prices lower next year, a Reuters poll showed.
The 32 analysts surveyed for the September poll forecast Brent crude oil to average $107.70 per barrel this year.
The benchmark is seen falling to $105.10 in 2014, and $102.50 in 2015.
SINGAPORE — Brent slid below US$115 a barrel on Friday as fears over supply disruptions in the Middle East eased after Britain said it will not join any military action against Syria, but remained on track for the biggest monthly gain in a year.
Slow economic growth and ample supplies are expected to keep a lid on oil next year with crude prices gradually slipping lower.
But analysts polled by Reuters say a price crash is unlikely and geopolitical concerns should help support the market.
Reuters monthly survey of 26 analysts forecast North Sea Brent crude oil will average $108 per barrel in 2013, down from an average of $111.71 so far this year.
Brent prices are projected to fall further to an average of $105.90 in 2014, the poll showed.
Brent crude oil futures sank more than 2% on Monday, as concerns of an imminent strike on Syria eased, and traders reduced positions that had reflected fears of oil supply disruption in the Middle East.
Brent crude oil sank to its lowest mark in one week, narrowing its premium over the U.S. crude oil contract which did not fall by as much.
I feel like I’m on crazy pills!
For weeks now, I’ve been waiting for the price of oil to face a modest pullback. Point being the current price of crude ($100-plus) is higher than the simple supply-and-demand fundamentals are leading on. Supply and demand be damned — the price of crude keeps inching higher!
Alas, it turns out we’ve been dealt a healthy dose of the oil market’s most sinister force: the “Middle East Effect”…
World oil prices shot higher Monday, striking 2.5-year highs on the turmoil in Libya and the Middle East, analysts said.New York's main contract, light sweet crude for delivery in April, hit $106.95 a barrel -- the highest level since September 2008.It later stood at $105.67, up $1.25 compared with Friday's close.In London, Brent North Sea crude for April rose 88 cents to $116.85."The unrest in Libya has pushed the price of oil up to a 2.5-year high," Commerzbank analysts said in a research note on Monday.
Crude prices have risen in Asian trade on continued investor concerns the unrest in Libya could spread to the oil-rich Middle East.New York's main contract, light sweet crude for delivery in April, gained 44 cents to $104.82 per barrel.Brent North Sea crude for April delivery rose 56 cents to $116.50."It is the fear of the spread of turmoil to other Middle Eastern countries that is fuelling the further increase in prices," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.