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Lingering concern over the sustainability of high Spanish borrowing costs may limit further gains in the oil market despite heightened tensions in the Middle East, according to CNBC's weekly survey of oil market sentiment.
Brent and U.S. crude futures posted weekly gains of more than 4 percent, both contracts having touched eight-week peaks on Thursday, as fighting raged in the Syrian capital Damascus and just over half of Iran's parliament backed a draft law to block the Strait of Hormuz shipping lane.
"Europe will be back front and center this week with Spanish 10 year (yields) above 7 percent," said Kirk Howell, Chief Operating Officer of SunGard's Kiodex, who has a 'neutral' view this week. "There is definitely real risk of a conflict with Iran and that risk needs to be covered in a portfolio, but I believe both sides will try every avenue to not be seen as the aggressor. We could see a similar situation that we saw in March where no news out of Iran is good news and oil slides without an event."
Six out of 13 respondents, or 46 percent, expect oil prices to rise this week; four (about 31 percent) expect prices to fall while the remaining three believe prices will remain around current levels, CNBC's weekly survey of oil market sentiment shows. Last week's survey correctly predicted prices would rise.
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