WTI, Brent oil futures reaches higher after bullish El-Badri Notes
Crude oil futures eliminated losses to hit the highest levels of the session on Monday, as investors replied to bullish notes made by OPEC Secretary-General Abdalla El-Badri.
Elsewhere, the New York Mercantile Exchange (NYMEX), crude oil for delivery in March decreased on 0.78% or 35 cents, to trade at $45.95 a barrel during U.S. morning hours.
Nymex oil dropped by as much as $1.23 to bang a session low of $44.36 prior, a level not seen since March 2009.
Again, on the ICE Futures Exchange in London, Brent oil for March delivery increased 0.55% or 27 cents, to trade at $49.06 a barrel. Earlier in the day, Brent hit a low of $47.59, down $1.20.
Oil prices eliminated losses after El-Badri declared he is willing to meeting with non-OPEC producers to keep stability on the market. El-Badri also said that oil prices could reach $200 per barrel if there is a short of investment following the recent price rout.
Oil prices have dropped almost 60% since June as the OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, making a glut in global supplies.
Futures dropped sharply earlier in the day as traders were careful after Greek anti-austerity party Syriza swept to victory in elections on Sunday, reviving concerns over the country’s future in the euro zone.
Greek leftist party Syriza created an alliance government with the right-wing Independent Greeks party on Monday. Syriza won 149 seats in Greece’s 300-seat parliament, at the same time as the Independent Greeks took 13 seats, giving them a happy governing majority.
Though the two parties are on opposite sides of the political spectrum, they both decline austerity measures connected with Greece’s international bailout.
Syriza leader Alexis Tsipras has promised to renegotiate the terms of Greece’s €240 billion bailout and reverse many of the austerity measures imposed by the European Union and International Monetary Fund, raising the opportunity of a major conflict with euro zone partners.
The euro dropped to an 11-year low of $1.1098 against the greenback before performing a rebound to $1.1266, as most market analysts suppose Tsipras to ultimately make compromises to appease international lenders and avoid the so-called “Grexit”.
As well, likely next Greek Finance Minister Yanis Varoufakis has formerly stated desire for Greece to remain in euro zone.
The U.S. dollar index that measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.17% to hit 95.16, after touching a more than 11-year high of 95.77 on Friday.