Current Oil Prices Mixed in Asian Trading

Current oil prices remained volatile during yesterday’s trading in Asia as investors wait for more stimulus by policymakers to strengthen the ailing economy of the United States and Europe.

In the NYMEX, light, sweet crude for delivery in September fell 13 cents for a per barrel oil price of $90 while Brent North Sea for delivery in September gained 5 cents at $106.52 per barrel.

Angel Merkel, the Chancellor of Germany, and Francois Hollande, the President of France have committed to protect the euro while investors are very hopeful that the Fed will come up with new stimulus to strengthen growth of the United States.

With the central focus for the current week on the meetings of the central bank out of the US and Europe, and a lot of quantitative easing possibly already reflected in the current market scenario, there is still a great deal of potential risk to many asset classes for the present week, said IG Markets Singapore’s Jason Hughes.

The governing council of the European Central Bank will meet this week for its regular policy meeting every month under intense observation as investors watch out for the fulfillment of Mario Draghi’s promise to do everything they can to preserve the euro.

In a recent publication, Hughes said that Draghi made huge promises in the past week. However, there is still doubt if he can make it happen. He further said that Spain’s situation stays pressured, Greece appears even surer to finally default and Italy’s observed pressure stays constant, leading to increasing concerns.

In the meantime, poor U.S. economic growth data pushed the per barrel oil price higher since the United States is the number one oil consumer in the world.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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