Fundamental Oil Report (2012-02-07)

Crude opened today’s session at $97.08 and recorded a high of $97.40 and a low of $96.72 where it is currently trading around $96.79 a barrel.

Today crude is struggling amid two major factors that counter each other. On the one hand, fears and uncertainty in Europe that Greece might default as soon as March if no agreement was reached today on new austerity measure. On the other hand, the United States steps up tensions with Iran, as it imposed new sanctions on the Islamic republic by freezing all assets for Iran’s central bank, government and any financial institutions which would tighten the leash on Iran and may force the country to halt its nuclear program.

Mixed factors affect crude nowadays but the negative ones are more than positive, which is taking crude gradually to the downside for the second consecutive session rally that begun witht he start of the week amid fears in Europe.

Volatility will remain high today with the eyes on Greece ans especiallys as unions stage a general strike today objecting new austerity measures, crude will not take a specific direction before any result from Greece, where it will see an upside direction if an agreement appear between Greece’s political parties, but on the other side, a downside panci selloff will be favorable if Greeks rejected these measure which will lead the country to default, and accordingly, a much darker picture!