February 7th, 12:56 pm by Barbara Zigah
(eToro Blog) WTI crude oil prices rose above $97 per barrel earlier, the result of two key factors. First, a prolonged cold snap in Europe has boosted demand for heating oil and second, an executive order was signed yesterday by U.S. President Barack Obama, which effectively freezes Iranian assets, a move which is certain to ratchet up the animosity between Iran and the U.S.
OpenBook traders are certain that the price of oil will continue to rise, and sentiment as of this writing is almost exclusively bullish with 54 buyers and two sellers. Over the past day, as oil prices edged up to a 6-month high, OpenBook traders with long positions booked their profits. Trader XenderX, who allocates 23% of the portfolio to oil, closed out one long yesterday with a 19% return and has two open longs with targets of 99.00 and 100.00. Over the past quarter, this trader’s oil positions have returned an average 16%.
Trader vkhetan also closed out four longs in the past 24-hours, reaping profits between 7.27% and 11.82%. This trader, who allocates 24% to oil, is working to achieve his first recorded gain, and is on track to show an 84% weekly return. Two open long positions are targeting 97.76 and 98.97.
Iran’s intentions for its nuclear program have been called into question, and the U.S. and some European nations have tightened sanctions on the government to halt hard currency inflows that could be used to further the program. While Iran is not a major oil supplier to the U.S., some E.U. members – including Greece and Italy – rely heavily on Iranian oil. More worrying, the Iranian government has the ability to disrupt the oil supply chain from other Arab producers, by strategically blocking delivery in the Strait of Hormuz.
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