Geopolitics took the centre stage in the commodity sector, although improvement in macroeconomic data and the approval of the new bailout package for Greece also impacted market sentiment. Iran’s move to halt oil exports to the UK and France spurred worries about disruption of oil supply to European countries although the real demand of Iranian oil from these two countries was limited. Brent crude oil price jumped to the highest level in nine months. The prompt month contract rallied to a new record in euro term and close to a record in sterling term. As oil prices get more expensive, market concerns about the impacts on world economic recovery should emerge soon.
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Weekly Fundamentals – Rise in Oil Prices May Further Defer Economic Recovery
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