The Dow Jones Industrial Average (Dow Jones Global Indexes:.DJI) and S&P 500 (INDEX:.SPX) closed up 0.1 percent each, while the Nasdaq (NASDAQ:.IXIC) finished little changed. Australian shares dipped 0.1 percent.AXJO while Japan’s Nikkei.N225 shed 0.4 percent.
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U.S. President Barack Obama and French President Francois Hollande, meeting in Washington, urged against an escalation, while North Atlantic Treaty Organisation Secretary-General Jens Stoltenberg said the military alliance stood in solidarity with Turkey. They also awaited USA crude stocks data, with expectations of a small increase.
“You have an oversupplied market that will, at the least, remain oversupplied and will, at the most, be more oversupplied than we are right now”, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc.
Pic:ReutersNEW YORK: Oil prices rose yesterday after strong losses last week, as Friday’s deadly attacks in Paris raised geopolitical tensions that a few said could threaten global oil supply.
“Any increase is likely to be a short-term given that the overall picture is that the world is still producing more oil than it needs, which is keeping the barrel price down”.
In contrast to the Fed, the European Central Bank is widely expected to add stimulus next week, including deepening its already negative interest rates that make banks pay, not receive, interest on their deposits at the central bank.
Analysts will look out Wednesday on whether USA government data matches, exceeds or falls short of the nationwide build of 2.6 million barrels reported by API.
Precious metals were under pressure.
Base metals were also pressured, suffering from concerns about slowing demand from China. Oil prices initially hit a 6-year-low on November 18, when it sold for $38.04, but rose to $38.52 the following day, before it crashed to another low on Monday. Oil prices may drop to as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market, Venezuelan Oil Minister Eulogio Del Pino said on Sunday, advocating the group adopt an “equilibrium price” of $88 that would cover the cost of new investment in production capacity.
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Light, sweet crude for January delivery rose $1.27, or 3%, to $43.02 a barrel on the NY Mercantile Exchange. Brent LCOc1 added 0.5 percent to $45.03.
