Thursday July 24, 2014

Oil prices steady a day after Israel launches airstrikes against Gaza, kills Hamas leader

In this March 6, 2012 photo a pumping unit sucks oil from the ground near Greensburg, Kan. THE CANADIAN PRESS/AP, Charlie Riedel

BANGKOK - Oil prices were steady Thursday a day after Israel launched an offensive against Islamic militants in Gaza as analysts downplayed the risk that the fighting poses to energy supplies.

Benchmark oil for December delivery was up 3 cents to US$86.35 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 94 cents to finish at $86.32 per barrel in New York on Wednesday after the offensive raised concerns about possible supply disruptions in the Middle East.

But Peter Esho, chief market analyst at City Index Group in Sydney, said real threats to energy supplies emanate from troubles in the Gulf region, since "neither Israel, Jordan, Lebanon, Egypt or Syria are key producers of oil."

"Conventional wisdom suggests that tensions in the Middle East overnight from Israeli's strike at Hamas should put upward pressure on oil prices," Esho said in a market commentary. "But this is actually an exaggerated narrative and data over the past two years has shown otherwise."

Meanwhile global economic issues and the "fiscal cliff" in the U.S. are still in focus. Unless President Barack Obama and Congress reach a compromise, a series of expiring tax cuts and broad spending cuts will take effect in January, seriously impacting the world's largest economy.

Slower economic growth means less demand for fuels such as gasoline, heating oil and natural gas.

In other energy futures trading on the Nymex:

Heating oil rose 0.5 cent to $2.993 per gallon.

Gasoline rose 0.9 cent to $2.661 per gallon.

Natural gas rose 1.3 cents to $3.773 per 1,000 cubic feet.



NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Pipeline News North welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus

About Us | Advertise | Contact Us | Sitemap / RSS   Glacier Community Media:    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy


Lost your password?