So far this week, Brent has been trading sideways, whereas U.S. light crude WTI gained more than 3 percent. Crude markets seek a new direction. Needless to say that riots in the Middle East region remain main topic. Specifically, markets watch closely situation in Yemen and Bahrain which are neighbouring countries of Saudi Arabia. Today, opposition supporters will hold protests agains the ruling family in Bahrain.
Given the events in the MENA (Middle East and North Africa) region, we revise up our forecast for the average price of Brent crude. We estimate that the average price could reach 105 USD per barrel this year (we estimate that the current level of unrest adds approximately 15 USD per barrel to the price of oil). Moreover, risks seem to be skewed rather to the upside.
Copper shook off part of fears from Japan’s earthquake and China’s monetary tightening and currently is trading above 9700 USD per ton. The price of the metal has been rising for the second consecutive week. This time is heading for more than 2 percent gains.
Gold hit a new all-time high yesterday in the afternoon. Weaker U.S. dollar pushed the price of bullion up to 1447 USD per troy ounce (USD/toz) level. Nevertheless, gold lost more than 1.5 percent in the evening and closed slightly weaker in comparison with the previous session.