What's Moving the Oil Markets?

What's Moving the Oil Markets?

•-IPE Brent futures in London extended losses in the aftermath of a foiled terrorist attack to blow up airliners flying between the UK and the US following Wednesday's US stock data driven sell off, brokers said Thursday.

•Although the disruption to airlines and airports has no direct impact on crude demand, the market expects further disruptions to push the energy complex lower as demand starts to hit jet fuel.

•"The situation has already forced a sell off in jet fuel with traders anticipating less demand in the short and medium term but Jet is only a small part of the barrel and really what we are seeing is a wider cross market sell off that typically follows something like this," said one broker. "It's based on sentiment that this may the beginning of something bigger and the policy is to de-risk yourself although I can't see it having a huge impact on crude prices but they will be impacted in the short term," he added.

•At 1101 London time (1001 GMT) September Brent was trading at $76.30/barrel, 98 cents lower from Wednesday's settle at $77.28/barrel.

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