“The pro-bailout vote in Greece has ignited a relief rally, which in the very near term will meet resistance at $87 in WTI (West Texas Intermediate, the benchmark grade for U.S. crude futures) and around $100 for the European contract,” according to ANZ analysts including Mark Pervan and Nicholas Trevethan.
“However, we could see prices press another 5 percent higher in the days to come," ANZ said. But uncertainty over Europe and weaker-than-expected U.S. data will keep markets on edge, ANZ warned.
Oil prices were expected to remain little changed this week, with U.S. crude futures seen oscillating in a tight range around $84 a barrel, according to a CNBC survey of analysts ahead of the Greek elections.
"On the front of everyone's mind is Greece but I do not anticipate any real resolution following the election results," Kirk Howell, chief operating officer of SunGard's Kiodex, who has a "neutral" call for this week said before the poll results. "Whatever party wins will likely negotiate a new agreement with the euro zone, regardless of the rhetoric up to the election."
Oil has consolidated around $84 over the last two weeks, Howell noted, adding: "Given the complexity of coming events, I think it's prudent to wait for the price to break above $86.60 or below $81 to establish a direction."Page 2 of 5 | Prev Page | Next Page