Iran Energy News Oil, Gas, Petrochemical and Energy Field Specialized Channel
Related Articles
The pledge of the Organisation of Petroleum Exporting Countries (Opec) to cut output may keep oil prices supported in the short term. but traders are eyeing US reaction to Iran’s recent missile test.
Analysts say traders will watch the stand-off between Iran and the US. after the US announced new sanctions on the Opec’s third-biggest member country following Iran’s recent missile test. In addition to Iran. traders will also keep an eye on rising US rig counts of shale oil. which has been on a gaining streak.
Weekly US rig count and inventories combined with news flow from the White House and progress with regards to the ongoing production cut will continue to set the agenda during February. said Ole Hansen. head of commodity strategy at Saxo Bank.
“We continue to see limited upside to crude oil at this stage with the downside risk primarily being led by the risk of a disorderly reduction of a bullish oil bet close to 1 billion barrels.” Hansen said.
Oil has gained 16 per cent since the oil producers decided to cut production to prop-up prices.
On Friday. West Texas Intermediate closed 0.54 per cent higher at $53.83 per barrel. after gaining 1.5 per cent last week. Brent crude rose 0.44 per cent higher at $56.81 per barrel. Brent gained 2.3 per cent in the previous week. extending gains for a third week. Vaqar Zuberi. head of research. portfolio manager at Mirabaud Asset Management. expects Brent to be in the range of $60-$65 per barrel in the second half of 2017.
“Brent and WTI prices are likely to remain rangebound over the next few weeks before inventory data in the spring starts to show a significant decline.” Zuberi said.
In other commodities. prices of gold will also remain well bid. he added.
The mixed jobs report from the US has dimmed chances of a Fed rate hike soon. along with geopolitical tensions under the new Trump administration may support sentiment.
On Friday. international spot gold closed 0.36 per cent higher at $1.220.30 an ounce. The yellow metal has gained 50 per cent of what was lost following the US election in November.
