Brent oil advanced on potential supply disruptions

Source: Dukascopy Bank SA

Energy commodities apart from Brent oil declined on Monday despite weaker US Dollar and hopes for easing in the Eurozone, China and US. However, increased geopolitical tensions in the Middle East restricted the downswing of the commodity group.

Crude oil started Monday's session on a positive note amid  potential supply disruptions from Strait of Hormuz. However, crude oil futures halted the bullish trend during US session as investors turned to demand worries.

Brent oil was the only gainer on supply concerns. On Monday, Israel's news agencies reported that the country is testing a new system for warning people of a missile attack as conflict with Iran may be inevitable in the nearest term.

Natural gas moved closer to seven-week low as cooler weather in the US weighted down on the demand prospects.

Heating oil was flat ahead of the US crude oil inventories data due on Wednesday. Potential supply disruptions from the Middle East supported the commodity price.

 

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