- WTI price moves upward over the escalation of the Israel-Gaza conflict.
- US and UK military forces have carried out air strikes against various Houthi locations in Yemen.
- Iran has captured a civilian oil tanker “Marshall Islands-flagged St Nikolas” carrying Iraqi Crude destined for Turkey.
- The improved Chinese Trade Balance data could support reinforcing the Crude oil prices.
West Texas Intermediate (WTI) price rises on the second consecutive day, driven by heightened concerns over potential oil supply disruptions in the Red Sea. Air strikes carried out by the United States (US) and United Kingdom (UK) targeted Iran-backed Houthis in Yemen, raising fears that the situation could escalate the Israel-Gaza conflict into a regional conflict. The WTI price improves near $73.50 per barrel during the Asian session on Friday.
President Joe Biden announced that, in collaboration with the United Kingdom and with the assistance of Australia, Bahrain, Canada, and the Netherlands, US military forces have carried out successful strikes against various Houthi locations in Yemen. Additionally, Biden emphasized that he is ready to take further actions without hesitation following the airstrikes on Houthi targets in Yemen.
Crude oil prices gained upward momentum following Iran's announcement of the capture of a civilian oil tanker “Marshall Islands-flagged St Nikolas” carrying Iraqi Crude destined for Turkey in the Gulf of Oman on Thursday. Official Iranian state media declared the seizure as a retaliatory measure against the United States' seizure of the same ship a year ago, which was headed for Iran at that time. The incident is anticipated to contribute to continued volatility in crude oil prices in the coming days.
Additionally, the recently released better-than-expected Chinese trade data for December could potentially bolster support for Crude oil products, given China's status as the largest oil importer. The Chinese Trade Balance in USD for December rose to $75.34B from the previous $68.39B, surpassing the expected $74.75B. The Exports (YoY) figure exhibited a growth of 2.3%, surpassing the expected 1.7%. Meanwhile, the yearly Imports in CNY increased by 1.6%, compared to the previous 0.6%. These positive trade figures from China may contribute to a favorable environment for Crude oil prices.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0800 ahead of key events
EUR/USD stays in a consolidation phase at around 1.0800 early Tuesday after closing in positive territory on Monday. Market participants await ZEW sentiment data from Germany and the EU, producer inflation data from the US and Fed Chairman Powell's speech.
GBP/USD trades at around 1.2550 after UK jobs data
GBP/USD struggles to build on Monday's gains and hovers around 1.2550 in the European session on Tuesday. The data from the UK showed that the Unemployment Rate edged higher to 4.3% in the three months to March as forecast, failing to trigger a reaction.
Gold price gains ground ahead of US PPI data, Fed’s Powell speech
Gold price rebounds despite the consolidation of the US Dollar on Tuesday. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.
Top meme coins post gains following increased social activity amid GameStop pump
Meme coins in the crypto market saw impressive gains on Monday following a recent surge in GameStop stock. The increased attention surrounding these tokens signifies a potential resumption of the meme coin frenzy of March.
Entering a crucial run of data for financial markets
We are entering a crucial period for financial markets and forecasters as Americans' near-term inflation expectations rise again. Upcoming reports on the CPI and PPI for April, along with new data on retail sales and industrial production, will provide valuable insights.