Oil prices rose Monday amid reports that a strike in the oil refining industry of France led to shortages of fuel in the country. Support to the market also helped optimism on stock markets and the weakening dollar.
Following the auction on Monday, October 19, at the New York Mercantile Exchange futures price for WTI crude oil for November delivery rose 1.83 dollars to 83.08 dollars per barrel. At the InterContinental Exchange in London November contract for Brent Crude oil price increased by 1.92 dollars and closed at 84.37 dollars per barrel.
Continuing the third week of a strike in France has helped the oil market to overcome the tendency to decrease, caused by the strengthening dollar on Friday and the morning session on Monday, October 18. Reaching a low of 80.35 dollars per barrel. (81.53 dollars per barrel. - Brent), the price of mark WTI turned around and headed up.
The strike at the port of Marseille and in the refineries of France led to a noticeable shortage of fuel supply in the country and rising prices for petroleum products in Europe. With the end of September, prices for diesel fuel increased by 8%, gasoline - almost 14%. On the background of the resulting fuel shortage idle idle 15% of petrol stations in France.
Recall that the reason for the strike first in the oil port of Marseilles, and then to refineries France was the intention of President Nicolas Sarkozy to pension reform. At the moment, in the port of Marseilles unloading waiting 28 tankers with crude oil and 24 - with mineral oil. Meanwhile, over the past seven days of striking workers had joined the port for 12 refineries throughout the country, exacerbating the situation. But the government refuses to yield to the demands of strikers.
In morning trading on the Forex is a tendency to an increase in the dollar, which puts pressure on oil prices. However, the U.S. currency could not hold the resulting gains. Against the dollar played a heightened investors' beliefs that the Fed will help weakening economy, while continuing to pump money into it.
The reason for the growth of investor optimism were the words of Ben Bernanke, who on Friday hinted markets that the Fed intends to continue easing monetary policy by launching a second round of monetary incentives. Despite the lack of detail in the Statement, Bernanke, that was enough to cause an increased appetite among investors for risk.
