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The cause behind the explosion is not clear, the chasis of the bus is reportedly intact.

21 Nov 2012

LONDON (Commodity Online): With the turmoil in the Middle East worsening, latest round of development being an explosion in a bus in Tel Aviv that injured at least 10 people, crude prices have climbed in a big way.

The cause behind the explosion is not clear, the chasis of the bus is reportedly intact; intial reports suggested. But the bus explosion in Tel Aviv evoked celebratory gunfire from militants in Gaza complicating the truce efforts, Reuters has reported.

The bus was blown up on a main street near the Defence Ministry and military headquarters even as the Israeli government has labelled the explosion as a terrorist attack.

Brent crude for January delivery has climbed by 1.26% and was seen trading at $111.17 a barrel at 6.21 PM IST. On the NYMEX, WTI crude for the same month has climbed 0.95% and was at $87.58.

On India's MCX, Crude Oil for December delivery was seen trading at Rs.4864 a gain of 1.23% as of 6.32 PM IST. 

“Until we get some further news from the Palestine-Israel situation, traders will probably trade from the long side,” Ole Hansen, senior manager of trading advisory at Saxo Bank A/S, said by phone from Copenhagen today to Bloomberg. “There were increased hopes of a cease-fire in the Middle East yesterday. That has not really materialized.”

US Secretary of state Hillary Climton is expected to travel today between Jerusalem, West Bank and Cairo in an effort to find a solution to the crisis.

“Crude trade will remain choppy until we have some clarity on the Israeli-Gaza conflict,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mail to Bloomberg. “Traders in the U.S. might not want to be short ahead of the long holiday weekend.”

U.S. markets will be closed for the Thanksgiving holiday on Thursday.

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