News

Oil prices boosted by trade tensions, Iran

02/10/2018

While the markets are being distracted by the latest political circuses in the USA & Europe, Oil (#BRENT, #WTI) have been quietly moving higher and are currently trading at $84.30 & $75.50/bbl respectively. The Iranian oil embargo reduces global oil availability by around a million barrels a day, and naturally prices are getting squeezed. The US President has made his displeasure with OPEC known in the usual way via Twitter, but the truth is that OPEC don’t really have a strong interest in selling their finite resource at a price that suits anyone else and why should they ? The only things that will bring the price of oil down now are either a reduction in demand or an increase in supply. While prices move up we don’t expect supply to be increased. However there may be a reduction in demand if U.S./China trade tensions escalate to the point where Chinese manufacturing demand slows. It would take a little while before any effect filters into the market but for the foreseeable future stronger oil prices are going to be a fact of life and we’ll be positioned accordingly.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more