US crude futures surge $2.79/bbl on geopolitical tensions

19 July 2012 20:46  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for August delivery settled at $92.66/bbl on Thursday, up $2.79 versus the previous close, extending the gains to seven consecutive sessions in response to investors’ geopolitical concerns.

Aggressive buying was also encouraged by market sentiment that market fundamentals could be changed by rising violence in Syria and an attack on Israeli tourists in Bulgaria, as well as international tension over Iran's nuclear development programme.

Upside momentum also broke through technical resistance barriers, triggering buy stops and extending the gains.

The rally overshadowed the release of data showing a rise in US weekly jobless claims and a contraction in Mid-Atlantic manufacturing output.

Strong corporate results lifted the stock market but in the currency markets the euro shifted lower against the dollar.

Impulsive buying lifted August WTI to $92.94/bbl before retreating. The August contract expires on Friday.

ICE Brent for September delivery surged to $108.18/bbl before settling at $107.80/bbl, up $2.64.

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