WTI Rises a 3rd Day After U.S. Air Strikes in Iraq; Brent Gains By Heesu Lee Aug 11, 2014 7:53 AM GMT+0300 West Texas Intermediate crude rose for a third day amid speculation that last month’s price decline was excessive as the U.S. begins air strikes in Iraq. Brent was higher in London. Futures gained as much as 0.4 percent in New York, rebounding from a 6.8 percent decline in July, the biggest drop since May 2012. U.S. jets and drone aircraft hit Islamic State fighters in multiple attacks intended to protect American personnel and prevent a massacre of ethnic and religious minorities in northern Iraq. The U.S. is also seeking to de-escalate conflicts in Gaza and Ukraine. “Despite the fact that there are several ongoing geopolitical conflicts, oil prices have remained significantly lower than they should be,” Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul, said by phone today. “WTI prices will show a continuous rise up to $100.” WTI for September delivery rose as much as 42 cents to $98.07 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.91 as of 12:46 p.m. in Singapore. The volume of all futures traded was 57 percent above the 100-day average. Prices, which closed at a six-month low of $96.92 on Aug. 6, are down 0.5 percent this year. Brent for September settlement rose as much as 0.3 percent to $105.34 a barrel on the ICE Futures Europe exchange. Brent closed at $104.59 on Aug. 6, the lowest level since November 2013. The U.S. benchmark crude traded at a discount of $7.19 to Brent, compared with $7.37 on Aug. 8. Air Strikes The U.S. urged Iraqi leaders to form an inclusive new government. Prime Minister Nouri al-Maliki, a Shiite Muslim, has been accused of being a divisive figure whose actions have pushed minority Sunni Muslims into an alliance with the radical Islamic State. The U.S. conducted new air strikes against Islamic State militants in Iraq yesterday, destroying several armed trucks and a mortar position held by militants, the U.S. Central Command in Tampa, Florida, said in a statement. In Ukraine, the military demanded that pro-Russian rebels surrender and dismissed offers of a cease-fires. Ukraine is trying to dislodge separatists from strongholds in Donetsk and Luhansk as Russia raises the pressure on its western neighbor to halt the campaign and allow immediate assistance. President Vladimir Putin, blamed by Ukraine and its U.S. and European allies for stoking the conflict, has said the fighting is creating a humanitarian disaster and offered to provide aid. Hedge funds and other money managers decreased their net-long position in crude-oil futures by 15 percent to 236,381 futures and options combined in the week ended Aug. 5, U.S. Commodity Futures Trading Commission data show.
Posted on: Mon, 11 Aug 2014 06:15:32 +0000
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