Oil Prices Eye $100 Finish Despite Brief Drop
Oil prices are on track to end the week above $100 a barrel for the first time since mid-May, despite a 3.21% drop in Brent crude futures and a 2.89% fall in US West Texas Intermediate crude.
The recent surge in oil prices has sparked a sell-off in US markets, dragging Asian stocks and bonds lower. The MSCI Asia Pacific Index fell 1.3%, led by losses in Japan and South Korea, as investors became increasingly risk-averse ahead of the latest US inflation data and an expected interest rate hike by the Federal Reserve.
UBS energy analyst Giovanni Staunovo attributed some of the decline in oil prices to 'moderate' headlines about possible new talks in the Middle East. However, he warned that near-term risks to the upside for oil prices remain, accompanied by ongoing high price volatility.