TAIPEI, Taiwan, May 17, 2018 /PRNewswire/ - Royston Carr Asset Management research analysts commented on recent Oil price fluctuations as they hit their highest since November 2014 on concerns that more than a million barrels of oil could disappear once U.S. sanctions against Iran bite later this year.
Also driving prices higher, investors were bracing for a deepening economic crisis in Venezuela which risks disrupting exports from the major producer. The political uncertainty in the OPEC member state and widespread expectations that Donald Trump is likely to re-impose sanctions fuelled fears of a deeper supply shortage.
Key analysts at Royston Carr Asset Management noted that Brent and WTI crudes hit a new three-and-a-half-year peak on Thursday's morning trade. On the New York Mercantile Exchange, West Texas Intermediate futures rose 70 cents, or 1 percent, pushing above $72 a barrel for the first time since November 2014.
Michael Tadic who is the Head of Corporate Trading at Royston Carr Asset Management commented "Oil could correct a bit lower as stronger dollar may cause investors retreat from buck-denominated assets."
"Yet, another bearish signal was IEA's warning that higher prices could weaken demand, which in turn could cap the market," he added.
Prices for Brent crude oil futures, the international benchmark for oil prices, were up 0.98% , or 88 cents, at $80.14 a barrel on London's ICE Futures exchange, revisiting an earlier move past $80 for the second day in a row.
Callum Johnson, Senior Vice President at Royston Carr Asset Management also noted "These downward forces, oil prices retain support from geopolitical risks and producers' commitment to limit output until the end of the year."
Oil prices also rose despite a recent jump of the U.S, dollar, which strengthened on Thursday to fresh highs as investors shrugged off weak data on retail sales to extend the buck's four week-long rally.
SOURCE Royston Carr Asset Management