Powered By

Breaking News

Crude rises on positive US budget talks; Middle East tensions

Publish Date29/11/2012 07:35:04 AM

Last Update

Crude rises on positive US budget talks; Middle East tensions

Sentiment improved and the outlook of the global recovery brightened after U.S. lawmakers appeared to be getting closer to reach a deal on the worrying “fiscal cliff” which threatens to push world’s largest oil consumer into recession in 2013.

Republican House Speaker John Boehner is optimistic that talks on the tax increases and spending cuts worth $600 billion can avert a budget crisis “sooner rather than later”, while President Barak Obama said he hopes to reach a deal before Christmas.

Global economic recovery will be sustained if U.S. lawmakers will manage to reach a deal. This would brighten the outlook for oil demand; but until then caution will persist, and this is seen in the limited gains that crude saw today.

The Greek debt concerns vanished after European finance ministers and the IMF agreed to release another tranche of loans for Greece, brightening the outlook for the region’s recovery, yet the uncertainties over fuel demand persists.

Although crude rose on Thursday for the first time in four days, it is trading in a tight range as of this writing around the $86.75 per barrel level, with the highest at $86.87 and the lowest at $86.53. Brent is trading at $109.83 after rising 0.29%.

Crude oil also rose after U.S. stockpiles unexpectedly declined. The Energy Department report showed yesterday that crude supplies slid 347,000 barrels last week, although they were expected to climb about 300,000 barrels.

Although worries over the Gaza-Israel offensive faded, the geo-political risks expanded in the Middle East. Protests in Egypt against President Mohamed Mursi’s attempt to grant himself new powers continue, while tensions over Iran were renewed.

Ahead of possible talks with world powers, U.S. and European Union officials said that Iran is trying to develop nuclear weapons; Iran insists that it’s just for civilian purposes, while Israel believes that the missiles that were fired by Hamas were coming from Iran.

Markets are now eyeing the German employment report, euro zone’s confidence data and the U.S.’s pending homes sales, jobless claims, personal consumption and GDP, where the third quarter’s growth is expected to improve in the world’s largest economy.

Comments

Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
Markets
United States
Europe
Asia Pacific
Calendars
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
News
Top News
FX Updates
Market News
Stocks
Commodities
Global Highlights
Political News
Around the World
Analysis
Opinions
Studies
At A Glance & Video Commentaries
Market Pulse
Community
Forum
Chat
Blogs
Press Releases
icn.com
About Us
Advertising
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.


Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.


©2012 ICN.COM. ALL RIGHTS RESERVED