Market Overview

Brent Near $108 With Tension In Israel In Focus

Brent Near $108 With Tension In Israel In Focus
Related BNO
Oil ETFs Show Muted Reaction To Price Bearish Rig Count Data
Here's Why Diamondback Energy Could See 38% Production Growth Next Year
Libya - Oil Output Surprisingly Increases In October (Seeking Alpha)
Related BROAD
FOMC Statement From July 29 to July 30
Euro Hangs In The Balance As Fed Meeting Gets Underway

Brent crude oil declined on Monday as tension in Gaza cooled off following a difficult  to achieve humanitarian agreement between Hamas and Israeli forces.

The commodity traded at $107.96 at 6:15 GMT, with most expecting to see prices rise again if fighting on the Gaza strip restarts.

CNBC reported that U.S. Secretary of State John Kerry was unable to get the Israeli government and Hamas to agree on a comprehensive ceasefire, but a 24-hour pledge to stop fighting was implemented.

However, without concrete plan of action for the future, most analysts expect oil prices to increase once the deal expires. 

Related Link: 4 Things To Understand About This Market

Tension in Libya and Ukraine also weighed on prices as investors kept an eye on the potential for those nations’ conflicts to interrupt supplies. In Libya, more fighting left around 36 people dead over the weekend as Islamist militants and government forces battled for control in Benghazi.

The crisis in Ukraine also raged on with both the U.S. and the EU preparing sanctions against Moscow.

Despite instability around the world, the general market sentiment is that there is an oversupply at the moment, which has kept a lid on prices. Moving forward, investors will have their eyes on economic data for a better gauge of global demand.

U.S. data due out this week is expected to follow suit with the region’s past few weeks of strong figures, while eurozone data is expected to confirm the region’s slowdown and provide more evidence to support theories that the European Central Bank will ease further.

Posted-In: Hamas John KerryNews Commodities Forex Global Pre-Market Outlook Markets Best of Benzinga


Related Articles (BNO + BROAD)

View Comments and Join the Discussion!