Depicting a sign of improvement in the US economy, the prices on oil hovered below $100 a barrel.
Benchmark crude mounted 12 cents to $99.
77 in electronic trading supposed to be delivered in February on the New York Mercantile Exchange.
On 29th December 2011, the contract increased to 29 cents to settle at $99.
65 in New York.
However, Brent dropped down 6 cents at $107.
95 a barrel on the ICE Futures exchange in London.
With a jump from $75 in October to $100 in mid-November, the prices on crude tried to stay stable in the commodity market.
Many investors are looking forward to increasing potential wherein the US economy will try to avoid recession in 2012.
On 29th December 2011, the government reported that the claims for jobless benefits declined to a four-week average of 375,000, which is the lowest level noted down so far in three and a half years.
A sneak peek in the US economy displayed that the contracts to buy US homes have enormously increased to the maximum level according to the reports of the National Association of Realtors in a year and a half.
Increasing Europe's debt crisis is a strong representative of next year's recession according to some analysts.
Hence, it will weaken global crude demand in upcoming days.
Ritterbusch, an energy consultant and associates pointed out: "From a longer term perspective, we continue to zero in on the euro zone as the primary driver of oil pricing during the first quarter of 2012.
" He further added: "We still view the eurozone debt issues as intractable.
" Because of increasing tensions between Iran and Western powers over Tehran's nuclear power program, traders are very much concerned about the future impact.
In fact, Iran threatened to discontinue the main oil export passage of the Strait of Hormuz in the Persian Gulf if the U.
S.
and other nations tighten sanctions.
The US Navy commented that it will not bear any move to confine the strait's traffic.
According to the energy trader, Blue Ocean Brokerage, such a step by Iran will influence the prices on oil, which will increase up to $50 if Iran, OPEC's second-biggest crude exporter tried to stop the strait.
He added: "Let's start with an easy $20 spike, then add in a risk premium for insurance costs, delays, costs to push oil through alternative routes and the obvious loss of 3.
5 million barrels a day from Iran.
" In other Nymex trading, heating oil mounted 0.
7 cent to $2.
93 per gallon and gasoline futures slipped 0.
3 cent at $2.
67 per gallon.
Natural gas futures were down 2.
3 cents to $3.
00 per 1,000 cubic feet.
Benchmark crude mounted 12 cents to $99.
77 in electronic trading supposed to be delivered in February on the New York Mercantile Exchange.
On 29th December 2011, the contract increased to 29 cents to settle at $99.
65 in New York.
However, Brent dropped down 6 cents at $107.
95 a barrel on the ICE Futures exchange in London.
With a jump from $75 in October to $100 in mid-November, the prices on crude tried to stay stable in the commodity market.
Many investors are looking forward to increasing potential wherein the US economy will try to avoid recession in 2012.
On 29th December 2011, the government reported that the claims for jobless benefits declined to a four-week average of 375,000, which is the lowest level noted down so far in three and a half years.
A sneak peek in the US economy displayed that the contracts to buy US homes have enormously increased to the maximum level according to the reports of the National Association of Realtors in a year and a half.
Increasing Europe's debt crisis is a strong representative of next year's recession according to some analysts.
Hence, it will weaken global crude demand in upcoming days.
Ritterbusch, an energy consultant and associates pointed out: "From a longer term perspective, we continue to zero in on the euro zone as the primary driver of oil pricing during the first quarter of 2012.
" He further added: "We still view the eurozone debt issues as intractable.
" Because of increasing tensions between Iran and Western powers over Tehran's nuclear power program, traders are very much concerned about the future impact.
In fact, Iran threatened to discontinue the main oil export passage of the Strait of Hormuz in the Persian Gulf if the U.
S.
and other nations tighten sanctions.
The US Navy commented that it will not bear any move to confine the strait's traffic.
According to the energy trader, Blue Ocean Brokerage, such a step by Iran will influence the prices on oil, which will increase up to $50 if Iran, OPEC's second-biggest crude exporter tried to stop the strait.
He added: "Let's start with an easy $20 spike, then add in a risk premium for insurance costs, delays, costs to push oil through alternative routes and the obvious loss of 3.
5 million barrels a day from Iran.
" In other Nymex trading, heating oil mounted 0.
7 cent to $2.
93 per gallon and gasoline futures slipped 0.
3 cent at $2.
67 per gallon.
Natural gas futures were down 2.
3 cents to $3.
00 per 1,000 cubic feet.
Source...