What's Moving the Oil Markets?

What's Moving the Oil Markets?

•Front-month IPE Brent futures in London Thursday retreated to below the $70/barrel mark ahead of the US stock data release and the OPEC meeting in Caracas, where ministers are expected to maintain the group's current 28 million b/d output.

•On Wednesday, the energy complex plummeted as the US shifted policies by offering to join the European-led negotiations with Tehran. US and Iran broke off diplomatic ties 26 years ago. But as July Brent neared the support level of $69/barrel, prices rebounded by almost $1.50 to settle at $70.41/barrel.

•Hedge funds are also having a strong impact on market prices. "Funds have been surging in and out of the market. Open interest levels on Tuesday were a lot higher than previous sessions as the funds computer programs wait for pre-programmed flat prices to be reached, which triggers a buy or sell," a broker said.

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