FXstreet.com (Barcelona) - While supported to a weekly high at $86.50 late yesterday ahead of the March contract´s expiration, today crude oil is returning under $86.00 over Europe with an overall diminished appetite for risk in the marketplace. By mid-day over the continent, the front-month contract trades at $85.70 a barrel where it is around $0.70 under the day´s opening price.
Spreading unrest in the Middle East has spurred speculation of global supply disruption, but the likelihood of such an occurrence is looking less realistic causing traders to view current prices as inflated. What´s more, the fresh reserve ratio hike by China weighs heavily from the demand side due to the fact that the Asian giant is the world´s leading consumer of petroleum.
