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Oil Rises After Attacks on Tankers in Middle East

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Last week Brent crude fell below $60.0/b again after data on US crude oil inventories was released. As always, the market was rather volatile at the time of the weekly report, however, the bulls bought the asset for the second time in a row, thus not allowing the price to consolidate below the important psychological level of $60.0. After that, they made were several attempts to get over $62.2/b but this resistance level has not been overcome yet. If the buyers still manage to move above the $62.2-63.0 zone and update the new local high above $64.0, an upward correction may begin. Nevertheless, a more realistic scenario is the continuation of the flat in the $60.0-62.2 area. Perhaps it will continue until the next meeting of the OPEC countries, which is expected to take place in the first week of July.

The current volatility roots in the situation in the Middle East. Prices jumped by 4.5% last Thursday after attacks on two oil tankers near Iran and the Strait of Hormuz. This has been the second attack on oil tankers in the region for the last month. Moreover, the attacks take place against the background of growing tensions between the United States and Iran. Washington accused Iran of these attacks, Tehran denied its involvement. On Monday, oil prices continued to rise after US Secretary of State Mike Pompeo announced that Washington would take all actions necessary to ensure the safety of navigation in the Middle East, although he stressed that America does not want war.

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Source: https://olymptrade.com/
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