Oil Price Analysis and News
- Crude Oil Prices Spike on Oil Tanker Incident
- Rising Geopolitical Premium May Provide a Price Floor
Crude Oil Prices Spike on Oil Tanker Incident
Crude oil prices are soaring this morning with Brent crude rising as much as 3% following reports that there has been an incident in the Gulf of Oman. As it stands, the reason behind the fire of two oil tankers is still somewhat unclear with reports from Reuters, citing industry sources that a frontline oil tanker had been struck by a torpedo off the coast of Fujairah. Consequently, Brent and WTI crude futures have pared the entirety of yesterday’s losses.
Recent Attacks in the Middle East
The latest incident this morning has added to the growing number of events that have taken place in the Middle East with last month seeing two Saudi pipelines attacked by drones. As such, tensions in the Middle East are likely to be back on the rise, potentially putting a floor on an extension of losses if escalations were to increase.
Brent Crude Price: 1-Minute Time Frame (Intra-day)
Oil Impact on FX
Net Oil Importers: These countries tend to be worse off when the price of oil rises. This includes, KRW, ZAR, INR, TRY, EUR, CNY, IDR, JPY
Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.
Recommended Reading
What Traders Need to Know When Trading the Oil Market
Important Difference Between WTI and Brent
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
