Oil Futures Look Dodgy Following Geopolitical Risk Assessment
For the third week in a row, Crude-oil futures have continued to decline despite slight gains and losses during the Asian markets’ trading hours.
Geopolitical risk assessment was at the forefront of discussion between officials who are concerned with oil futures as a result of instability in the Middle East.
Edward Morse, head of commodities of Citi Research, offered his assessment of the situation, stating, “There are bearish risks from Libya and potentially Iran, but with Iraq on edge and Russia/Ukraine still simmering, oil prices are expected to find support.”
Iraq’s political situation continued to deteriorate over the weekend, with the parliament’s failure to elect a new speaker and address the widening security problem plaguing the nation. While U.S. Secretary John Kerry spoke from Vienna about concerns surrounding the significant gaps in nuclear talks with Iran
Despite hopes that oil production in Libya is on the rise, protests have choked closed the Brega oil port in the country’s east according to one oil official in the region.
Valued at $100.50 a barrel on the NYME as of 6:24 GMT, light sweet crude took a loss of $0.33 according to the Globex electronic session. On a less sour note, according to London’s ICE Futures exchange, August Brent crude fell a slight $0.08 to $106.58 a barrel.