Asian markets lifted by oil price bounce but eyes on Trumpcare

Adding to the upward pressure for oil is the crisis in the Middle East, where a Saudi-led blockade of Qatar has fuelled concerns of possible conflict.

Asian markets lifted by oil price bounce but eyes on Trumpcare

 

World Bulletin / News Desk

Energy firms rose in Asia on Monday as another increase in oil prices eroded last week's hefty losses, but investors are getting tetchy as Donald Trump struggles to pass his healthcare bill, raising concerns about his economic agenda.

Crude jumped more than one percent, extending gains into a third straight trading day after being pummelled to 10-month lows Wednesday on fears that output cuts by OPEC and Russia will fail to avert another global supply glut.

The drop had led to a sell-off in regional energy firms but the slight recovery provided some relief Monday, with Tokyo-listed Inpex rallying 1.81 percent, while Woodside Petroleum in Sydney and CNOOC in Hong Kong also advanced.

Doha at the weekend rejected a list of demands -- ostensibly aimed at fighting extremism and terrorism -- in return for an end to the nearly three-week-old diplomatic and trade row, which has reeled in regional powers Turkey and Iran.

“In characterising it as a family fight, as White House spokesman Sean Spicer appeared to do over the weekend, it’s not taking sides or a leadership role. Which means it could easily kick off -- especially given Iran is the shadow issue,” said Greg McKenna, chief market strategist at AxiTrader.

However, analysts warned that the oil gains would likely be limited as US firms keep bringing more rigs online.

Sukrit Vijayakar of Trifecta Consultants noted prices had fallen 20 percent in the first six months of 2017, a level of decrease not seen since 1997. "The bulls are willing OPEC to do something (though we are not sure what they would want OPEC to do)."

Güncelleme Tarihi: 26 Haziran 2017, 12:35
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