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Oil Recovers on Oversold Sentiment and Iraqi War

August 4, 2014 at 19:07 by Andriy Moraru

WTI grade of the crude oil is rising today following seven bearish trading sessions in a row. The commodity is gaining on the latest news from Iraq, where ISIS militant group is gaining control over towns and strategic facilities.

After losing almost 6 percent since July 24, the oil futures are finally showing some signs of recovery. Many analysts believe that the market has reached its oversold state when the prices had dropped to the lowest level since February last Friday. It is now using every bullish factor as a reason for a modest recovery rally.

Islamic State in Iraq and Syria have captured some towns on weekend and is now controlling Iraq’s biggest hydroelectric dam in the town of Mosul. Such significant turmoil in the oil-exporting country causes concerns about supply disruptions. Those are getting priced in the commodity market.

WTI oil rose from $97.61 to $98.27 as of 19:02 GMT on NYMEX today. It has reached $97.06 on Friday — it was the minimum level since February 5.

If you have any questions and comments on the commodities today, use the form below to reply.

2 Responses to “Oil Recovers on Oversold Sentiment and Iraqi War”

  1. Reshap

    UK GAS: Spot prices slightly firmer Tuesday as system short.
    Natgas will hit 245 soon CMP 238.5


  2. Reshap

    Due to US dollar strength – Gold, silver looking week..


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