Stability returns to oil price

The price of oil is broadly unchanged as the prospect of a war in Syria recedes.

The oil market has been volatile over the past two weeks as traders’ feared war in the Middle East. Syria is not a particularly large oil producing nation but the region as a whole is, and a US-led invasion of Syria could disrupt supply lines.

Russia has recommended that Syria hand over its chemical weapons, a move welcomed by President Obama, and this has brought stability to the oil market. The situation will remain in focus over the coming days though and if tensions should rise again oil could tick higher.

The US Department of Energy announced that oil inventories dropped by 219,000 on the week, against the market consensus for a drop of over two million barrels. Since the decline in stockpiles was much less than anticipated, it would suggest that demand was not as high as originally thought and explains why the price of oil slipped after the announcement.

Daily US Light Crude (Oct) (11-Sep-13) chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.