Dhaka, Bangladesh (BBN) – The week started with Brent crude oil ending lower as investors booked profits after gaining for four straight days and hitting overbought conditions as it topped US$ 120 a barrel.
During midweek, however Brent crude rose to above US$ 121 a barrel, the highest in eight months, as Iran halted exports to British and French companies ahead of a European Union embargo, while policy easing by China and hopes for a Greek bailout also buoyed prices, a weekly market update said.
OPEC’s second largest producer, Iran, ordered a halt to its oil sales to British and French companies on Sunday, retaliating against tightening EU sanctions as its ties with the West remained strained over its disputed nuclear program.
The announcement came as European oil buyers had already made big cuts in purchases from Iran months ahead of the sanctions.
This announcement was supply related and thus had a psychological impact on the oil market. The ICE Brent price last stood above US$ 124 per barrel, according to the update.
The week started with Gold prices facing a slump as investors took profits after an initial rally driven by growing confidence that Greece was edging closer towards winning a new rescue package.
The Bullion rose earlier in the session as buying sentiment gained a boost from news that China’s central bank might have used some of its massive foreign reserves to import gold late last year.
During midweek, Gold prices rose, as the EUR rallied on optimism that European leaders will sign off on a rescue deal for Greece and as China’s central bank further loosened monetary policy.
For rest of the week, Gold prices continued its increasing trend breaking ranks with the EUR and equities, since a massive European bailout deal influenced investors to buy the metal amid doubts that the bailout will work.
Gold rallied to its highest in more than two weeks after Euro Zone finance ministers agreed a 130 billion EUR rescue for Greece.
The Gold prices have benefited from news that China recently cut its required reserve ratio and committed to help the Euro Zone. The week ended with Gold prices hovering below a three-month high hit in the previous session when bullion rallied 1.0 percent on technical buying, while high oil prices also lent support.
BBN/SSR/AD-24Feb12-10:33 am (BST)
