The global crude oil futures markets seem set to remain firm, but volatile.
The eurozone debt crisis continues to put pressure on the euro in the currency markets and raises questions of the effect on oil demand.
Libya is successfully bringing crude production back up towards pre-conflict levels of around 1.6 million bbl/day, putting pressure on the prices of similar light, low sulphur grades from other producers such as Algeria and Nigeria.
Sanctions imposed on Iran over its nuclear programme were said to be having the desired effect on the county’s economy, but it continues to make threats to disrupt supplies of oil from other Arab Gulf producers.
The Syrian government shows no sign of heeding pleas from both the United Nations and the Arab League to halt attacks against its own people.
US oil stocks remain high with slack demand, so the US benchmark grade, West Texas Intermediate (WTI) is likely to remain at a sharp discount to Brent, the European benchmark.