adminLONDON. — Oil prices were little changed at around $74 a barrel yesterday on rising US borrowing costs and the prospect of further output rises after another increase in the weekly rig count, although the overall picture for crude remained bullish.
Brent crude futures were down 1 cent at $74,05 a barrel by 1145 GMT, while US West Texas Intermediate (WTI) crude futures were down 11 cents at $68,29 a barrel. Prices were supported by nervousness over the decision President Donald Trump must take by May 12 on whether to restore US economic sanctions on Iran.
“Underlying sentiment is bullish . . . we’ve got an important decision from Trump coming up in May and we have OPEC potentially trying to ‘overtighten’ the market. (Fund managers) need a continuous flow of bullish news for their position to be maintained and this week, it’s not a matter of just watching the oil market,” Saxo Bank senior manager Ole Hansen said.
Broader financial markets were under pressure from the rise in US government yields toward 3 percent, a level that in the past has triggered aggressive sell-offs in stocks, bonds and commodities.
“Whether a break above 3 percent will have an impact on currencies remains to be seen, but to have a rising cost of finance at a time when Saudi Arabia is aiming at $100, something is going to give. Last time we were at $100, interest rates were rock-bottom and that wasn’t a concern to anyone. This time around, it’s different,” Hansen said. — Reuters.
Online Reporter