Brent crude prices rose as the European session got underway, climbing above $76 a barrel for the first time in two weeks. The rally followed Iranian attacks on three vessels in the vicinity of the Strait of Hormuz, which were followed by military strikes between US and Iranian forces. Adding to supply concerns, the US authorities announced that they were revoking the temporary licence allowing Iranian oil sales. Meanwhile, US crude inventory data released overnight showed that stockpiles fell by 400,000 barrels. At the same time, Ukrainian drone attacks on Russian refineries have continued, primarily affecting diesel exports but also weighing on sentiment across the global energy market. Against this backdrop, oil traders will remain focused on developments in the Persian Gulf. The longer the flare-up in the conflict persists, the greater the likelihood that oil prices will move higher.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.