Commodity Daily News

The Russian-NATO tensions spark a jump in Crude Oil prices

The Crude Oil prices was a very bullish trading session yesterday as the price of a barrel rose above $121. Prices jumped more than $5 as traders were worried about the tensions between NATO and Russia, which could disrupt supplies to the West. Tensions with Russia reached a high as the U.S. and Poland signed a deal Wednesday to place a U.S. missile defense base just 115 miles (180 kilometers) from Russia's border, while Russian forces are still located deep in Georgia.

Effects of the war between Georgia and Russia were felt as BP PLC shut down its Baku-Supsa oil pipeline, which runs through the center of Georgia from Baku in Azerbaijan to Supsa on Georgia's Black Sea coast because of security concerns. With a capacity to pump up to 150,000 barrels a day, this oil line had recently been pumping around 90,000 barrels a day because of the tensions between the two countries. Trades should keep Bernake's speech on tap as USD volatility could affect the Crude Oil prices and of course pay attention to international news events as they have been the main cause of bullishness for the Crude Oil recently.