Crude Steady As Middle East Situation Escalates
Crude is steady around $47/barrel in early trade Monday after Israeli troops entered the Gaza Strip, escalating the 10-day-old conflict and threatening stability in the Middle East.
An Iranian military commander reportedly called for an oil boycott over Israel's offensive.
With the Middle East the largest oil-producing region in the world, accounting for almost a third of global output, the market remains nervous that the violence could widen.
While the violence does not directly threaten any oil supplies, the risk is it could engulf other Middle East countries that produce a third of the world's crude, with No. 4 oil producer and OPEC member Iran typically the most vocal.
Meanwhile the world's two largest consumers, the US and China, have both said that they will seek to boost reserve stocks in Q1 of 2009, whilst prices remain relatively low.
The ongoing dispute between Russia & Ukraine over gas supplies is also keeping the energy market nervous.
An Iranian military commander reportedly called for an oil boycott over Israel's offensive.
With the Middle East the largest oil-producing region in the world, accounting for almost a third of global output, the market remains nervous that the violence could widen.
While the violence does not directly threaten any oil supplies, the risk is it could engulf other Middle East countries that produce a third of the world's crude, with No. 4 oil producer and OPEC member Iran typically the most vocal.
Meanwhile the world's two largest consumers, the US and China, have both said that they will seek to boost reserve stocks in Q1 of 2009, whilst prices remain relatively low.
The ongoing dispute between Russia & Ukraine over gas supplies is also keeping the energy market nervous.