WTI Crude Oil Continues to Gain Over Tensions in the Middle East - Forex News by FX Leaders

WTI Crude Oil Continues to Gain Over Tensions in the Middle East

Posted Friday, May 17, 2019 by
Arslan Butt • 1 min read

WTI crude oil prices continued to rise, making it the first time this month where oil prices have continued their upward trend for four straight days. Heightened tensions in the Middle East region have compounded concerns about disruption in oil supply, causing prices to rise.

WTI crude oil closed the day at $63.32 per barrel, up 0.7%. Although, it is now trading slightly lower at around $63.09 at the time of writing. So far this week, crude oil has gained 2.7%, the highest rise in four weeks.

Iran aligned Houthi claimed responsibility for drone attacks against Saudi oil pumping stations earlier this week. Following this, a Saudi-led military coalition in Yemen has conducted air strikes on Sanaa, a Houthi-stronghold region.

US has also evacuated its embassy staff from Baghdad as a precautionary measure as tensions build up in this region. US President Trump has ordered an air craft carrier group and B-52 bombers armed with Patriot missiles to be deployed in the region.

While the US government maintains that it has no intentions to engage in a military conflict with Iran at the moment, supply risks remain high over this news. Could crude oil test 2019 highs achieved in April over this incident?

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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