• Tensions in Persian gulf push up oil prices. 
  • IEA expected to revise demand growth forecasts lower. 

Oil is solidly bid on both sides of the Atlantic during Monday Asian session amid heightened tensions, courtesy of Iran’s seizure of a British tanker

As of writing, Brent oil is trading at $63.17 per barrel, representing a 0.5% or 32 cent gain. Meanwhile, a barrel of WTI is changing hands at $56.00 – up 35 cents or 0.63%. 

Iranian military said they had captured a British oil tanker in the Gulf, possibly in response to Britain’s decision to seize an Iranian vessel earlier this month. 

British officials will be discussing the crisis later today at an emergency response committee meeting.

Further, a US official said on Friday that the US will destroy Iranian drones that fly too close to its ships. 

The increased tensions in the Persian Gulf, a vital international shipping route, could continue to bode well for the black gold

Prices, however, may drop if tensions ease as fundamentals are aligning in favor of the bears. For instance, oil demand is slowing and there is glut in oil markets, according to Fatih Birol, the Executive Director of the International Energy Agency (IEA). 

The agency will be revising lower its 2019 oil demand growth forecast to 1.1 million barrels per day (bpd) from 1.2 million bpd due to a slowdown in the global economy, Birol told Reuters over the weekend. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures