Tropical Storm and Middle East Tensions Cause Crude Oil to Rally

WTI crude oil continues to trade bullish, climbing higher over escalating geopolitical tensions in the Middle East and the tropical storm

Arslan Butt•Friday, July 12, 2019•1 min read

Early on Friday. WTI crude oil continues to trade bullish, climbing higher over escalating geopolitical tensions in the Middle East and the tropical storm developing off the coast of Gulf of Mexico. At the time of writing, WTI crude oil is trading at $60.53 per barrel.

On Thursday, over half of the US oil companies operating in the Gulf of Mexico shut down production, causing a 1 million bpd drop in crude output, due to the tropical storm Barry. As per forecast, Barry could develop into a category one hurricane, causing companies to shut down production and evacuate staff from the region.

In addition, tensions mounted in the Middle East over Iran’s attempts to block the movement of a British oil tanker in the Middle East region. This has increased the risk for transportation of crude oil in the region, which could potentially threaten supply from major OPEC producers.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.