Oil: Middle East risks keep Brent above $100 - ING
ING analysts Warren Patterson and Ewa Manthey note that Oil remains supported, with ICE Brent trading comfortably above $100/bbl as Middle East tensions and concerns over flows through the Strait of Hormuz sustain a risk premium.
ING analysts Warren Patterson and Ewa Manthey report that Brent oil prices remain above $100 per barrel due to Middle East tensions and concerns over oil flows through the Strait of Hormuz. The International Energy Agency has agreed to release the remaining 100 million barrels of emergency reserves, with 20 million barrels being diesel.
The US is reportedly unhappy with the release volumes, particularly for diesel. US crude oil inventories fell by the largest weekly amount since February, with offshore production shut down due to Hurricane activity. Fed Chair Kevin Warsh's comments have added to the selling pressure on the US dollar, allowing other currencies to gain strength.
Gold prices have been attracting buyers as the dollar weakens. However, the USD Index has dropped to a nearly two-week low, suggesting further weakness in the dollar.
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