Brent crude rose above $ 111 a barrel yesterday on renewed fears of supply disruptions from the Middle East amid growing optimism of an increase in demand with show the world’s largest economies signs of sustained recovery.
The falling oil exports from Iraq due to bad weather and a bomb attack on the convoy of Iraqi Minister of Finance and the escalation of attacks in Syria and Iranian naval maneuver in the Strait of Hormuz to renewed concerns about supplies. That helped the market to recoup some of the losses of the previous session due to large shipments of gasoline EU to the United States.
Brent rose to the nearest month maturity of 43 cents to $ 111.07 a barrel, after falling by 1.1% last Friday, its biggest drop since last December 17. U.S. crude rose 63 cents to $ 94.19.
Said Ben Le Brun, market analyst at optionsXpress Express in Sydney: If there are any concerns about supplies from the Middle East will see the impact of this risk premium will support prices. Those concerns offset oil losses that we saw on Friday due to the drop in gasoline prices.