Koltso Urala: Investors See Oil Futures as Dependable again

7 July 2011 (10:24)

The world oil prices went up considerably at the close of business yesterday. At London-based ICE, for example, the August futures involving Brent (a North Sea oil mixture) rose by $2.22 and reached $113.61 per barrel. The price of a barrel of Light Sweet increased by $1.95 and remained just a little short of $100, at $98.89.

Analysts believe the oil prices climbed because investors feel more optimistic about the U.S. further economic development, as the country’s industrial orders index jumped recently. Besides, now that the Eurozone is struggling with Greece’s debt problems and Portugal’s declining rating, investors once again see the oil futures as relatively dependable.

‘The oil also looks interesting again due to the impact of the Fukushima accident. Japan is planning to carry out large-scale stress tests, the results of which will most likely prove that it is necessary to invest heavily in the nuclear power station’s safety. What is more, such tests will also affect the other countries soon, which means a new wave of interest in the traditional energy sources and hydrocarbon consumption will emerge,’ says Bank Koltso Urala Project & Analysis Director Dmitri Suplakov.

Other materials on the topic::