This morning crude oil markets react to the death of Venezuelan President Chavez as the country is one of the leading crude oil producers in South America. In his early reign Chavez had nationalized the oil industry using the wealth from the oil production to enhance schools and medical care. Crude has climbed to trade above 91.00 trading at this writing at 91.02. Light Sweet crude oil broke a five-day losing streak yesterday on optimism over Chinese oil demand, record-high U.S. equities and North Sea supply disruptions. Crude oil futures closed higher, supported by a weaker dollar, a rally in equities and upbeat euro-zone and US economic data fueling the commodity’s first climb in four sessions. Brent oil prices closed higher also recovering from a five-day losing streak, boosted by North Sea supply disruptions.
Oil prices extended their rise slightly in post-settlement trading after the announcement of Venezuelan President Hugo Chavez’s death, ending the socialist leader’s 14-year rule of the oil-rich South American country. Gains were limited by medium-term concerns such as rising U.S. crude supply and the country’s fiscal crisis, which have pushed oil prices lower since mid-February. Commodity investors took encouragement from China’s vow to deliver economic growth this year of 7.5 percent and concentrate on boosting domestic consumption. The target is unchanged from 2012.Continue Reading....
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