Rising Tensions in the Middle East Cause WTI Crude Oil Prices to Rise - Forex News by FX Leaders
WTI crude oil

Rising Tensions in the Middle East Cause WTI Crude Oil Prices to Rise

Posted Friday, July 19, 2019 by
Arslan Butt • 1 min read

On Friday, WTI crude oil prices have climbed over 1% higher following news reports that the US Navy shot down an Iranian drone in the Strait of Hormuz. At the time of writing, WTI crude oil prices are trading at around $56.25 over increasing tensions in the Middle East.

On Thursday, the US Navy announced that it had “destroyed” an Iranian drone which had threatened one of its ships in the Strait of Hormuz. However, Iran is yet to confirm the loss of its drone in the region. Tensions are building up in the region after Britain also pledged to defend its shipping interests, while the US also stated that it would resort to “aggressive” measures to ensure safe movement of oil tankers.

However, crude oil’s gains continue to remain restricted by the long-term bearish outlook for global demand. As a result of the ongoing trade tensions between the US and China, the International Energy Agency (IEA) has reduced its 2019 global oil demand forecast to 1.1 million bpd, from its original growth forecast of 1.5 million bod which was then revised down to 1.2 million bpd in June.

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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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