Expectations of Greek Debt Resolution Leads to Increase in Crude Oil Prices
Oil prices recently increased with expectations that the debt crisis of Greece is nearing a resolution that will be beneficial to the economy of Europe. Traders continue to be worried about the Israel, Iran and U.S. tensions.
April delivery’s benchmark oil prices rose by 42 cents to end at $106.58 per barrel at the NYMEX. During the same day, it reached its highest rate of $107.20.
Brent crude oil prices grew by $1.32 to close at $125.44 per barrel in London’s Futures Exchange known as ICE.
The commodity sector moved in conjunction with the increasing equity markets worldwide. The markets are positive that Greece will finish a debt-swap deal with the private sector of investors to reduce 107 billion euro, or $140 billion US dollars, from its total debt. Primary results are set to be revealed in the coming days.
Current crude oil prices have grown over the past month from $96 to its highest level in ten months. The rise was caused by concerns that the military tensions on the nuclear program of Iran may result to a disruption of oil supply all over the world. Europe and the United States have implemented a ban on Iranian oil and Iran retaliated by threatening to block tankers that will pass through the Strait of Hormuz. Recently, an official from Israel said that satellite images support its country’s claim about Iran creating nuclear weapons.
In other New York energy trading, prices of natural gas recently post a sharp decline after a similar weather to spring covered the United States and raised anticipations of a weakening demand. Simultaneously, supplies remained at levels higher than previous years.
In New York, prices of natural gas dropped by 3 cents to end at $2.27 for every 1,000 cubic feet. The cost has reduced by around 27% over the year, and has reached its lowest rate in one decade.
Heating oil prices increased by 5 cents to end at $3.27 a gallon and futures of gasoline rose by 3 cents to close at $3.31 a gallon.