Oil Prices Decrease with Huge Traders Profits
Oil prices worldwide recently decreased with the huge profits that traders obtained from high crude costs in a period of nine months that came as an effect of growing Iran conflicts on limited oil stocks all over the globe.
A stronger US dollar also dented the oil market because it made crude that are priced in dollars more costly for buyers who are utilizing weaker currencies.
For April’s delivery, Brent/ICE oil prices decreased by $1.44 to reach $124.03 a barrel in London’s trade. In New York, West Texas Intermediate light-sweet crude oil price chart for April posted a similar decline of $1.08 to finish at $108.69 per barrel.
Sucden Financial Research brokerage analyst Myrto Sokou said that crude oil prices lowered with the rebounding of the US currency.
In the meantime, the recent gathering of several chief of finance in a G20 meeting held in Mexico concluded with the EU being informed that for it to obtain help, it has to create a larger financial shield by strengthening the resources of the International Monetary Fund.
David Morrison, a GFT analyst said that the US currency strengthened after the G20 meeting. He said that policymakers worldwide contend that countries in Europe must give their contribution the bailout of the eurozone before they seek more assistance from the IMF. He further added that discussions of Strategic Petroleum Reserve are being considered to help control oil prices. However, crude was able to give back after its recent gains.
In spite of the recent losses, analysts cautioned that there are still worries over the nuclear program of Iran.
Recently, current crude oil prices posted a sharp increase with Brent reaching $125.55 a barrel and New York oil prices attaining $109.95 per barrel. The last time that crude prices reached those high levels was in May of last year.
Capital Spreads’ boss Mr. Simon Denham said that the main factor pushing oil investment to its highest level in nine months is the current Iranian tensions. However, overnight trading in Brent cannot keep the same level and traders thinking that the increase may be a bit too much made a decision to clear several of their trading stakes.
The atomic agency of the United Nations recently said that it had major differences and concerns with Iran’s nuclear program following its result free return of their inspectors from their inspection of Tehran.
In a report about a trip to find out more about Iran’s suspected weapons program, the International Atomic Agency said that it still has serious issues regarding the possibility of a military agenda in the nuclear program of the country.
Tehran, which was sanctioned tremendously by the United States and the EU about its unwillingness to stop its uranium enrichment activities, asserts that its program is mainly for peaceful reasons.
The political and military leaders of Iran gave an earlier warning that they may close the Hormuz Strait, a main route for oil supply globally, in case the West continuously increase its sanctions to stop exports of Iranian oil.