Oil Retained Friday’s Gains after Failed Military Coup in Turkey and Continued Supply
Brent maintained its gains during the weekend after the failed attempt of a military coup in Turkey, which is a major route for crude from Russia and Iraq while being shipped through the Mediterranean Sea.
Futures did not note much change in London after rising 0.5 percent on Friday.
News of the military coup in Turkey earlier raised concerns regarding possible disruptions to oil shipments through one of the busiest shipping routes in the world.
However, after the takeover was prevented democracy was restored in Turkey, the Bosphorus Strait in Instanbul which is a major trading route reopened on Saturday.
Turkey has big role to play global oil, gas and grain trades.
On Saturday not only President Recep Tayyip Erdogan returned to Istanbul but things started to normalize with oil tankers being loaded and unloaded at the ports of Turkey. Supplies also arrived through pipelines from the neighboring countries.
Ric Spooner, a market strategist at CMC Markets, said, "There are obviously concerns about the situation. As it usually does in these circumstances, the market is looking through anything that doesn't look like a clear and present threat for disruptions."