Last Friday the markets were waiting for the results of the new round of talks with Iran over the weekend in order to halt their nuclear program, crude oil prices eased in the markets as there were hopes the U.S would succeed which therefore would bring rest to markets.
Iran is the second largest crude producer in OPEC and now the focus in the markets is on oil producing countries as they account for a great amount of crude oil supply so the markets are very sensitive. The contract last week on Friday shed $0.71 as it closed at $129.47 while recording a high of $132.86 per barrel and a low of $128.95 per barrel.
Today black gold prices gained on fears that a storm heading towards Mexico will disrupt supplies as already Iran said it would not put an end to the program. Saturday, the powerful UN nations the 5+1 gave Iran 2 weeks in order to stop their program or face consequences as the talks with them had failed. The continued commotion is triggering economies inflationary pressures as soaring energy and food prices are adding to the global slowdown. The markets today opened at $129.50 while recording a high of $130.77 per barrel and a low of $129.41 per barrel.
Markets again are very volatile as investors react to any news that has to do with affecting supply. There are already rumors that the markets have insufficient supply as continued unrest in the Middle East is just making things harder on economies as prices have been heavily boosted by this. Prices will stay to the upside as long as Iran is insisting to continue its nuclear program threatening supply conditions in the market.