Monday, November 25, 2013
U.S. crude oil gained 1.1% during the week after rallying towards
$95.6 during the mid week, mostly on profit taking after having
surged on some bright outlook for oil with an upbeat, better than
expected initial jobless claims data out of the U.S. Investors were
also focused on the Geneva talks between Iran and western
powers, over the Middle East nation's nuclear program, the
outcome of which could impact the oil supply scenario. Investors
also weighed the Energy Information Administration's weekly oil
report which showed a less than expected rise in U.S. crude
stockpiles, with hints the Federal Reserve may cut down the pace
of its monthly bond-buying program sooner than later.
The previous week went into discussion over an agreement of 6
nations with Iran and finally it went through over the weekend.
Iran and six world powers sealed a deal curbing its nuclear
programme, a fillip for global economic growth. The agreement
gives Iran some relief from crippling sanctions and is considered a
big step toward a more lasting treaty. While Iran will not be
allowed to increase its oil sales for six months, any easing of
Middle East tensions tends to lead to lower crude prices. Prices
are reacting to the historic deal because it takes some of the risk
WTI has ended flat stopping a continued declined the past six
weeks, the longest losing streak in 15 years, as U.S. crude
inventories expanded amid a surge in production. Stockpiles
climbed by 375,000 barrels to 388.5 million in the seven days to
Nov. 15, said EIA.
The initial jobless benefits in the U.S. last week fell by 21,000 to a
seasonally adjusted 323,000, beating expectations for a decline of
9,000. The news sparked demand for oil by stoking hopes for a
more robust U.S. economy down the road.
Brent has risen 4% since Tuesday as nuclear talks with Iran have
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