Dhaka, Bangladesh (BBN)– Oil prices have increased in reaction to the steps taken by Italy and Greece in the beginning of last week to address their economic and political crisis.
Improved US consumer sentiment also favored the upward trend which resulted in the U.S. crude reaching a 15-week high.
As the geopolitical premium showed signs of growth during the week, along with Iran’s sharpened nuclear ambitions and higher demand for winter fuel and diesel, Brent crude futures rose above USD 112 by Tuesday, a weekly market update said.
However, after three sessions of gain, Brent Crude slipped below USD 112, reversing some gains on worries that Greece and Italy may fail to impose unpopular reforms.
A surprise builds in crude stocks in the world’s largest oil consumer, the US, also worked towards oil prices closing just above USD 100 a barrel for the first time since June, propelled by news of a critical pipeline reversal.
At the week’s end, Brent crude continued to slip, heading below USD 111 on concerns about demand growth, as France and Germany opposed over the role the European Central Bank should take to solve the region’s sovereign debt crisis.
For the week IPE Brent posted a minor weekly loss of 0.73 percent, standing at USD 111.48 per barrel, while NYMEX WTI posted an impressive weekly gain of 7.03 percent, standing at USD 103.20 per barrel, the update added.
BBN/SSR/AD-19Nov11-11:13 am (BST)