Are higher oil prices expected?
Oil gains as MidEast ceasefire hopes dashed
"Oil prices reversed their early losses on Monday to post gains as hopes of a ceasefire in the Middle East were dashed by comments from Israel’s defence minister, while a leaking Russian oil pipeline raised fears over European supply.
“We cannot agree to an immediate ceasefire in Lebanon because then we will find ourselves in a few months in a similar situation,” Israeli Defence Minister Amir Peretz said. He added: “The army will expand and deepen its actions against Hizbollah.”
Meanwhile, the Russian government reported a leak on one of its main pipelines that supplies Europe.
ICE Brent crude futures for September delivery added 53 cents to $73.91 a barrel in early morning London trade, having fallen to an intra-day low of $72.70.
September West Texas Intermediate gained 29 cents to $73.53 a barrel in electronic trading. Gold fell $1 to $634.30/$635.30 a troy ounce."