© Reuters. NYMEX crude up in Asia Investing.com – Crude oil prices gained in Asia on Tuesday with Middle East tension squarely in the picture.
On the New York Mercantile Exchange, WTI crude for February delivery traded up 0.31% to $ 36.88 a barrel.
Overnight, futures closed slightly lower on Monday, following a choppy, volatile day of trading as a trio of nations joined Saudi Arabia in severing diplomatic ties with Iran, escalating Islamic sectarian conflict in the Middle East and Africa.
On the Intercontinental Exchange (ICE), volatility in global crude prices was just as pronounced. North Brent Sea crude for February delivery wavered between $ 36.80 and $ 38.98 a barrel before closing at $ 37.28, to finish flat on the session. At Monday’s highs, futures reached their highest level since Dec. 15.
Energy prices surged in overnight trading in the aftermath of an attack on the Saudi embassy over the weekend following the kingdom’s execution of a prominent Shiite cleric. Relations between Saudi Arabia and Iran have deteriorated since the execution of cleric Nimr al-Nimr and 46 others on Saturday for reportedly speaking out against the Saudi royal family.
On Monday, Bahrain, the United Arab Emirates and Sudan joined Riyadh in its row with Iran by severing or curtailing ties with Tehran. Saudi Arabia’s civil aviation authority, meanwhile, said it has canceled all flights to and from Iran, the Associated Press reported. Citing “blatant and dangerous interference,” in the Middle East, Bahrain, a Sunni-ruled island kingdom, said in a statement on Monday that it has cut off diplomatic relations with Tehran. In addition, Saudi Arabia has reportedly recruited Sunni powers throughout the region, deepening the conflict with Iran.
It followed statements from Iranian officials over the weekend that a rise in crude oil exports is dependent on future global oil demand and should not further weaken oil prices. Speaking exclusively with the official Islamic Republic News Agency, Iran oil minister Bijan Zanganeh said the nation expects to raise its crude oil exports by 1 million barrels per day in two phases after economic sanctions are eased later this year.
The sanctions have halved Iranian exports to approximately 1.1 million bpd, from pre-sanction levels of 2.5 million bpd in 2012. Iran is not seeking to “distort the market,” but is looking to “regain market share,” Zanganeh added.
Last month, OPEC decided to leave its production ceiling unchanged, until Iran completes its highly-anticipated return to global markets. Oil prices, which slumped by 30% last year amid a glut of oversupply, will likely come under further pressure when Iran goes back online.
Elsewhere, China said on Monday that it is “highly concerned,” with the rising tensions in the Middle East in a rare public comment on geopolitical issues in the region. China also reported that its China index fell by 0.4 points to 48.2 in December, considerably below analysts’ forecasts for a 49.0 reading. Any reading below 50 provides indications of contraction in the manufacturing sector.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
NYMEX crude positive factors in Asia with Center East tensions eyed
No comments:
Post a Comment