According to experts, the Syrian conflict threatens half of the offers of oil on the world market
The escalation of the conflict in Syria threatens almost half of the oil supply on the world market, resulting in rates of hedge funds on the rise of the futures for Brent oil reached a new high, according to Bloomberg.
In the face of increasing tensions in the middle East Brent rose to the highest level in more than three years, and volatility increased.
As reports “Economic truth”, Ashley Petersen, chief analyst at Stratas Advisors for oil in new York believes that the emotional investors believe markets are more prone to deficiency because they are actually sensitive to this tension.
For the week ended April 10, the net long position on Brent reached 632,454 thousands of contracts – the maximum for the data collection period ICE Futures Europe since January 2011.
The short positions increased by 5.9% to 32,676 thousand contracts. Long positions rose by 3.5 percent to 66513, thousands of contracts.
In relation to oil West Texas Intermediate (WTI) investors showed the same optimism as the us benchmark is not as susceptible to geopolitics.
The net long position in WTI declined by 1.6 % to 417,65 thousand contracts, according to data of the Commission on trade commodity futures the United States. Long positions fell by 1.7 percent, declined and short positions.
Despite tensions after missile attacks on Syria, the global oil prices down April 16. The cost of June futures for Brent crude oil declined by 1.03%, to 71,83 dollars per barrel, and the cost of may futures for WTI – by 0.91%, up 66,78 USD per barrel.
We will remind that in Friday’s trading resulted in record oil prices over the last six months. On the London ICE Futures exchange, Brent crude reached $72,39 per barrel, avilos the fastest rate of increase since July last year.