Oil Rises Near $78 After Wave of Algorithmic Buying
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
West Texas Intermediate crude rose to settle near $78 a barrel, bolstered by a wave of technical trading.
While “aggressive algorithmic buying activity” supported futures Tuesday, fundamental drivers are now needed to sustain higher prices, according to Dan Ghali, a commodity strategist at TD Securities.
A strong US military response to a drone assault on US soldiers over the weekend could lift the market, but for now the escalating conflict in the Middle East has had minimal impact on oil supplies.
“The response from the US will be key,” said Daniel Hynes, a senior commodity strategist at ANZ Group Holdings Ltd. “The market’s view on risks to supply have definitely changed in recent days.”
Futures fell earlier amid concerns about long-term demand. Saudi Aramco, one of the largest oil producers in the world, abandoned a plan to boost its crude output capacity, a huge reversal that raises questions about its view on future consumption.
Still, oil is on track for a monthly gain, with traders on high alert as Yemen-based Houthi rebels continue their assault commercial shipping in the Red Sea. An attack on a fuel tanker on Friday was the most significant yet on an oil-carrying vessel.
After three US deaths last week, President Joe Biden is facing pressure from some Republicans to strike Iran directly, but the most likely scenario is that Iranian-aligned assets outside of the country will be targeted. The challenge will be to project toughness without spurring a jump in oil prices in an election year.
Prices:
- WTI for March delivery was up $1.04 to settle at $77.82 a barrel in New York.
- Brent for March settlement rose 47 cents to settle at $82.87 a barrel.
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas