Brent oil tumbled on potential release of the US reserves

Source: Dukascopy Bank SA

Energy commodities apart from crude oil slid on Friday amid profit-taking after previous rally. However, inspiring US economic data limited the downswing of the commodity group. Moreover, persistent violence in Syria and escalating tensions between Iran and the West pushed energy prices higher.

Crude oil was the only gainer on brighter demand prospects amid better-than-expected US economic data. Supply uncertainty from the Middle East also supported crude oil futures.

Brent oil declined on speculation that the White House is considering the release of oil reserves to curb energy prices and foster success of Iranian oil embargo.

Natural gas slumped for the second consecutive session on Friday. Larger than expected increase in the US natural gas inventories last week continued to weight on the natural gas futures.

Heating oil moved lower, following Brent oil's suit. Potential release of US oil reserves coupled with strong greenback created heavy pressure on the commodity.

 

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