Crude Futures on the Move as Middle East Reported Fresh Clashes

Crude futures edged higher during the trading on Monday, whereas it slipped some points in the late North American trade.

Oil for June contract added 0.26% or +0.29 points to $112.57 per barrel on the New York Mercantile Exchange. Prices traded higher during electronic trading in Asian and European sessions but they had dropped early in New York’s floor session.

President of Strategic Energy & Economic Research, Michael Lynch, explained that traders were cautious during the trading as demand concerns remained a key issue for them.

Oil marched 2.40% in the past week as the dollar depreciated, improved corporate earnings raised hopes for increased economic activity and stockpile report came in bullish for oil. Meanwhile, oil delivery contract for Brent also ended lower. London, Brent crude oil for June delivery declined $0.33 or 0.30% to reach $123.66 per barrel.

The analysts suggested that continued unrest in the Middle East and North Africa, as well as a lower traded value of dollar supported the liquid prices.

The government forces in Yemen shot two of the protesters, according to media reports while the Syrian government also met the protests iron handed.

The dollar index, which used as measures to U.S. unit against notable global currencies, shed to 73.978 from 74.126 in late North American trading on Thursday. The depreciated greenback provides assistance to rising commodity prices as it make them less expensive to holders of rival currencies, increasing their investment demand.

Among other major commodities May Natural gas dropped $0.02 cents or 0.50% to settle $4.39 per million British thermal units. Gasoline futures for May added 0.40% or $0.01 to reach $3.32 per gallon while May heating oil also followed the trend by declining 0.02 or 0.50% to $3.18 per gallon.

Prices were likely to feel pressure as the summer season approaches in which there would be little need for heating or cooling demand in major US areas.

(Source: http://www.usamarketnews.com/commodities-news/1966/crude-futures-on-the-move-as-middle-east-reported-fresh-clashes.html)