Yesterday cost of Brent oil was going down steadily and it reached 112.77 dollars per barrel. After rebound to 113.87 quotes resumed movement and they wend down to 112.72 dollars per barrel. Then the cost managed to recover to 113.74 dollars. Today oil continues to grow and it already managed to reach 114.30 dollars level.
At this stage oil quotes are supported by weakened US dollar in anticipation of ECB meeting, press conference of Mario Draghi and tomorrow's data on employment in non farm sector of the USA. These data carry within risks for oil bulls and if statistics on labor markets turns to be weak, than oil may drop in price.
Continuous conflict around Iranian nuclear program creates danger of military actions by Israel against Iran, and this, in its turn, may lead to sharp reduction of oil supplies on the world market, it justifies speculative purchases. But slowing down of world economy, including China and USA, as well as European crisis may lower energy consumption and this factor will put pressure on prices. Today and tomorrow is better to stay out of the oil market.