Monday, April 21, 2014
World oil prices edged Ukrainian driven turbulence
World oil prices slightly higher in quiet trading on Monday (Tuesday morning WIB ) , gaining support from the Ukrainian crisis after deadly shooting happened over the weekend .
Main contract , light sweet crude or West Texas Intermediate ( WTI ) for delivery May rose seven cents to close at 104.37 U.S. dollars per barrel on the New York Mercantile Exchange , according to AFP.
In London , where trading is limited to electronic transactions because of the Passover holiday , the contract term Brent North Sea crude for June delivery rose 42 cents to 109.65 U.S. dollars per barrel .
Desmond Chua , market analyst at CMC Markets in Singapore , said thin trading volume for the long Easter weekend holiday .
However , investors are increasingly concerned about the events in Ukraine , says Chua.
A deadly shootout in a town in the east of the country on Sunday ( 20/4 ) beating at least two pro - Kremlin insurgents , destroy a ceasefire Passover and raised concerns that Russia would send troops into the former Soviet country .
The attack damage deals are made in Geneva last week between Russia , Ukraine and Western countries to pro -Moscow rebel groups surrendered their weapons.
Because Ukraine is the main channel for Russian gas to Western Europe , there are fears that any full-scale armed conflict in the region would disrupt supplies and send oil and gas prices skyrocketed .
But Timothy Evans of Citi Futures said , the market could be near the top position after Brent rose 2.20 U.S. dollars per barrel in the last week .
"While crude oil may still have the potential to be traded higher in the near future with the help of some seasonal strength in gasoline and the tensions between
Ukraine and Russia , the oil market looks increasingly overbought in the market with supply / demand projected surplus , " he said in a client note .