Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Oil above $104 on stronger equities

20 May 2013, 15:39

London-  Brent crude oil held above 104 dollars per barrel on Monday supported by strong equity markets and a slightly lower dollar.

This was in ispite a weaker outlook for fuel demand and ample supplies.

World stock markets rose to five-year highs, boosted by optimism over the outlook for global growth, while the dollar slipped 0.2 per cent against a basket of currencies, easing from its highest since July 2010.

Brent crude futures for July were down 30 cents at 104.34 dollars per barrel by 0810 GMT, after three straight sessions of gains.

U.S. crude fell 50 cents to 95.52 dollars.

``The strength of the dollar has been negative for commodities, so a slight easing in the currency is positive,'' said Olivier Jakob, analysts at Swiss energy consultancy Petromatrix.

``But short-term the market looks fairly balanced, with Brent trading in a range between 90  dollars and 110 dollars per barrel. It is difficult to see it breaking out of that for a while.''

Several countries celebrated religious festivals on Monday, keeping market volumes low in Europe.

Traders awaited the minutes of a Federal Reserve meeting due to be released on Wednesday to assess the outlook for the oil markets as any hints of continued monetary easing by the U.S. central bank would be bullish.

But the fundamental outlook for oil looked less positive with a weaker oil demand growth outlook for 2013, as well as higher supply forecasts by the International Energy Agency last week.

The IEA last week forecast eight per cent growth in world oil demand on aggregate between 2012 and 2017, while supplies outside the Organisation of Petroleum Exporting Countries (OPEC) are expected to rise 10 per cent.

Brent could rise to 105.94 dollars if it breaks through resistance at 104.82 dollars per barrel, according to Reuters market analyst Wang Tao.

U.S. crude may drop towards 94.78 dollars as it hasn't been able to convincingly break through resistance at 95.98 dollars, he added.

Oil markets found some support from tension in the Middle East which raised worries over the security of fuel supplies from the biggest producing region.

Lebanese Hezbollah militants attacked a Syrian rebel-held town alongside Syrian troops on Sunday and Israel threatened more attacks on Syria to rein the militia in.

- Reuters

Tags opec

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...