Oil bull rolls on despite possible China reserves release, gains over 5% in the week
by SOURAV D | VIEW 1239
On Friday, both US and UK crude oil futures’ prices had snowballed, largely driven by a supply crunch alongside frets over Russia-Ukraine row which could have had long-running repercussion, despite growing evidences that China might release its crude oil reserves during Lunar New Year in a bid to put the kibosh on a soaring energy price. On top of that, as of Friday’s global commodity market wind-down, both UK and US crude futures’ prices had entered into an overbought territory, signifying a possible downward trend ahead. Meanwhile, addressing to an utterly tense geo-political landscape with the United States, the highest contributor of troops in the NATO alliance, fretting that Kremlin might seek to revitalize its dominance on Europe amid a plausible worn-out US Congress with Government budget deficits soaring to a record high, which would unlikely to bear the expenses of its NATO troops just months after beating a hasty retreat from Kabul, a partner at Again Capital Management said, “There has been a bump up in the geopolitical risk factor that is boosting prices”.
Oil jumps amid growing geo-political risk; OPEC+ failure to reach output quota
Citing statistics, in the day’s global commodity market wind-down, UK crude futures’ prices ended 1.9 per cent higher to $86.06 per barrel, spiking to a fresh 2-1/2-month peak, while US WTI (West Texas Intermediate) crude oil futures’ prices had gained 2.1 per cent to $83.82 a barrel.
In the week, US crude futures’ prices climbed 6.3 per cent, while UK crude added 5.4 per cent, scoring fourth straight weekly percentage gain.