Dhaka, Bangladesh (BBN) – The week started with Brent oil rising near 10-month highs above US$ 125 a barrel as the United Nations’ nuclear watchdog said Iran has sharply stepped up work on uranium enrichment.
Brent’s recent gains have been fueled mainly by worries over Iranian supply. During midweek, Brent crude futures extended losses and slipped below $124 snapping a surge that threatened to hurt the global economy while concerns over supply from the Middle East helped stem the slide, a weekly market update said.
The surge in prices, an increase of more than three percent in January for Brent in addition to the 11 percent current month, has already prompted the International Monetary Fund (IMF) to flag oil as a rising threat to the global economy.
The week ended with Brent crude settling just over $123, snapping two days of losses, in line with gains across broader financial markets on expectations that cheap loans to be offered by the European Central Bank will spur buying of riskier assets.
The week started with Gold prices falling, as sharp gains from earlier in the week based on economic optimism and a Greek bailout deal prompted investors to take profits.
News that Europe sealed a rescue package for Greece to avert an imminent chaotic default lifted gold prices along with the EUR and other riskier assets.
During midweek, Gold traded steady and was trapped within a range below $1,770, as a major cash injection by the European Central Bank expected later in the week supported sentiment, according to the update.
BBN/SSR/AD-03Mar12-11:00 am (BST)