Oil Prices Rising Due to Egypt Turmoil

August 16, 2013

Yesterday world financial markets closed mainly with a slump in major indices. As such, in Europe the British FTSE 100 shrank by 1.58 percent down to 6,483.34 points, the German DAX 30 fell 0.73 percent down to 8,376.29 points while the French CAC 40 shed 0.51 percent and made 4,093.2 points.

On the Russian floor, the MICEX index fell 2.28 percent down to 1,391.37 points, and the RTS index went down by 2.13 percent to 1,327.49 points.

In the USA the Dow Jones index dropped 1.47 percent down to 15,112.19 points, the NASDAQ fell 1.72 percent and reached 3,606.12 points while the  S&P500 shed 1,43 percent down to 1,661.32 points.

On the commodity market, the price of September futures for Brent Crude Oil rose by $0.91 making $111.11 a barrel. The price of September futures for light WTI oil grew by $0.48, up to $107.33 a barrel.  

Oil prices are going up due to the escalating conflict in Egypt. Since a major part of oil deliveries are transported through the Suez Canal and the Suez-Mediterranean pipeline controlled by Egypt, investors are wary of problems with oil deliveries, which, in turn, leads to a hike in oil prices.  

The EUR/USD pair reached the earlier mentioned level of 1.3210. Now the pair is once again in the range that doesn’t allow for further predictions regarding its movement. At this point the pair is dependent on macroeconomic news.

Anna Gorenkova, NordFX Analyst

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