Powered By

Breaking News

U.S. fiscal deadlock, Mideast supply concerns hold oil market back

Publish Date27/12/2012 07:52:16 AM

Last Update27/12/2012 09:26:41 AM

U.S. fiscal deadlock, Mideast supply concerns hold oil market back

Oil stood roughly above $90 a barrel on Thursday after jumping to the highest level in two months, backed by hopes of a near deal to avert the so-called fiscal cliff amid renewed concerns of supply disruption in the Middle East.

WTI Crude for February delivery was up 0.27 percent at $91.10 a barrel as of 06:59 GMT, a level slightly below the two-month high hit yesterday in New York, when prices jumped 2.7 percent from the prior close, but now are little changed.

Oil markets is trading quietly after Wednesday`s sharp gain as President Barack Obama and lawmakers turned their focus to a possibly inching economic hazard by the end of the year unless they prevent the country from falling off the cliff.

Fears about the Middle Eastern stability took center stage pushing prices after security forces in the United Arab Emirates arrested UAE and Saudi Arabian citizens who were allergy planning to launch terrorist attacks in the region.

Geopolitical tensions in the Middle East continue to pressure prices amid growing speculation of possible supply disruption. Meanwhile, Iran resumes naval exercise near the Straits of Hormuz, through which a massive portion of the world`s oil supply is transported.

Moving West to Iraq, the central government in Baghdad said earlier this week it was suspending some $296.6 million in payments to Kurdistan after accusing the latter of failing to honor its export commitments.

Tension between the two sides had ground to a halt now, at a cost of $20 million a day. Iraq and Kurdistan are already swaying near a full-scale civil war, with ownership of the oil fields on their mutual frontier at the center of the fight.

Oil markets are still driven by the fiscal deadlock in the U.S. with less than five days for the President and Congress to bridge differences to avoid roughly $500 billion in sharp tax hikes and spending cuts set to take effect in the New Year.

So far, the White House and Republicans in Congress have been unable to strike a deal.  The USDIX, which tracks the performance of the greenback against a six-currency basket, fell for the second day to 79.51.

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