Current Oil Prices Mixed

The current oil prices are mixed with investors closely watching for progress in the eurozone as Cyprus reconsiders a contentious bailout agreement, according to analysts.

After reaching its lowest level in three months in yesterday’s trading, Brent for May delivery shed 61 cents to a crude price per barrel of $108.90 during midday trading in London.

On the NYMEX, WTI for delivery in April gained 16 cents to its current price of $93.90 per barrel.

Brent is currently facing a new pressure as the condition of the economy of Cyprus affects market sentiment, according to analyst Myrto Sokou of London’s Sucden Financial brokers.

The price of the U.S. benchmark slightly recovered in yesterday’s trading as some analysts say that the economy of Cyprus was not big enough to have a major effect on the economy of Europe and the rest of the world.

The market began to grasp the reality that Cyprus is only a small portion of Europe’s economy, according to broker and analyst Gene McGillian of Tradition Energy.

Cyprus recently imposed a contentious tax on bank deposits that are lower than 20,000 euros, igniting a warning from the governor of the central bank that the major bailout deal of the eurozone is already at risk of collapsing.

The warning of Panicos Demetriades came as Chief Christine Lagarde of the International Monetary Fund encouraged Cyprus to meet its promise according to the recently agreed 10 billion euros or $13 billion deal between partners in the eurozone.

The revised agreement is no longer planning to impose a one-time tax on bank deposits lower than 20,000 euros, but kept a tax of 6.75 percent on deposits amounting to 20,000 to 100,000 euros and 9.9 percent for deposits higher than 100,000.

Oil markets will most likely stay unstable for the coming days as investors monitor for any impact of progress in Cyprus to other countries in the eurozone, according to senior investment analyst Ker Chung Yang of Singapore’s Phillip Futures.

By: Chris Termeer