The Euro rose against the dollar on Thursday when news broke that the European Union was on the verge of agreeing a restructuring deal for debt ridden Greece. This led to an increase in investment in riskier assets which in turn led to an increase in the price of a barrel of oil.
While there was initially more stability it did not counteract the long term worry about Greece and other vulnerable countries within the recessionary European Union so the markets remained somewhat limited.
U.S. crude to be delivered in May increased in price for the first time in three days reaching $81 per barrel and by early afternoon it had risen further to $81.06 per barrel. ICE Brent reached $80.68 but then declined back down to $80.31
Analysts however feel that the uncertainty surrounding Europe and especially Greece is far from over at this stage and that the price of U.S. crude is still going to be dominated by this issue for sometime to come.
Commerzbank’s Fritsch said a rise in demand from Asia is very likely and that there are signs that the U.S. stockpile is decreasing as their economy improves slightly but this will probably only lead to prices reaching $83 at best.
It seems there is still a strong risk of over supply in the next three months which could lead to a surplus market and prices bottoming out.Andrew Reid, Staff Writer, Gulf Jobs Market News