Oil Reaches Weekly High
27-01-2012
Iran is attempting to take measures in response to the EU oil trade embargo even before the ban takes effect in July. The ban on Iranian oil was approved on Monday to the chagrin of several Middle East countries along with China and Russia. The United States has commended the EU for the ban. Iranian officials are pointing an accusing finger towards Saudi Arabia, which has promised to fill the gap in demand for oil by the west when the ban commences. Iran has asked other OPEC members to place pressure on Saudi Arabic, with limited success. Crude oil is up this morning in trading by 0.08%, valued at 99.78 USD per barrel.
Oil reaches short term high
Oil was up trading this morning at its highest point this week, despite the Iranian oil embargo and reported American oil reserves. Prices of crude increased due to investor sentiment in the U.S. Dollar and the belief that the American economy will continue it resurgence well into 2012. The EUR/USD is down this morning in late Asian trading by 0.050%, currently sitting at 1.3102. The GBP/USD is down as well at 0.105%, quoted at 1.5674.
GDP First Release scheduled for today
The Advanced GDP quarterly numbers will be released today in the United States. This report is usually released 30 days after the end of a quarter and is considered crucial by Forex traders. The Advanced GDP measures the cost of goods and services against inflation and provides a very accurate picture of the state of the American economy. The last report, in October, came in at 0.1% higher than expected and provided a major boost for the USD. The only other report of any note for today is the KOF Economic Barometer in Switzerland. Monday will also be relatively quiet in the economic calendar, with the exception of the monthly Building Consents in New Zealand.
EU looking for cash
A senior European lawmaker confirmed that member states must contribute funds to the Greek bailout. Greece is predicted to default by as early as March, with Portugal facing a grim future as well without some form of economic relief. Parallel to the Greek bailout is the restructuring of the nation’s private debt with bondholders. So far discussions have given not given birth to any solutions. The EU commission has repeatedly stated that any further bailouts are hinged on a restructuring of Greek debt. In the meantime, the IMF is searching for 600 billion USD in order to provide assistance to ailing Euro Zone countries. Northern European nations are expected to foot at least one third of this amount.
