On Wednesday the international market, crude oil prices once again found a vigorous recovery. The prices just a day before it slipped down the 90 dollar barrel for the first time after the end of August. After the recent attacks on oil tankers in Hormuz Jaldmiramdhyadhya (Strait of Hormuz) and the news of peace talks by Iran authorities have been rejected, the expectation of diplomatic reconciliation between Washington and Tehran has been shocked, which led to the price again
Raw oil prices bounce and market figures:
THE BRENT CRUDE FUTURE WITH JANUARY EXPIRY CLOSED AT A BARREL OF 92.64 DOLLARS WITH AN EDGE OF 1.3 PERCENT. ON THE OTHER HAND, THE DECEMBER CONTRACT OF THE US WEST TEXAS INTERMEDIATE I.E. WTI CRUDE CLIMBED 0.4 PERCENT TO THE LEVEL OF 86.42 DOLLARS PER BARREL
The oil prices came under $90 for some time in Tuesday’s business session, as at that time the investors were ignoring whether the US Congress would have pressured to end tension with Iran on the Budden and the US administration due to the ongoing political stir
News about U.S.-Iran interaction:
The US President Donald Trump also indicated a little restraint in Iran’s case this week and further apologized by reducing the need for a military attack. However, on the other hand, Iran has said that no peace talks are going on at this time. Iran’s top security chief has also adopted a tough stance that despite the US’s objections, they will not let the annexed uranium content out of the country
Meanwhile, a report by the Wall Street Journal claimed that U.S. Vice President JD Vens has emerged as the chief interlocutor in potential interaction with Iran. According to the report, Vens are considering face-to-face interaction with Mohsin Rageai, the radical secretary of the Iran’s Supreme National Security Council. The Trump has said to his colleagues that he is in favor of re-starting the conversation, although the authorities say that the conversation is now in the extremely early stages, with a direct meeting
Attack and supply status on tankers on the Hormuz Root:
AMONG THE DIPLOMATIC HARVESTER, THE NEWS OF ATTACKS ON COMMERCIAL SHIPS IN THIS EXTREMELY IMPORTANT SEA WAY HAS BEEN REPORTED, WHICH HAS INCREASED THE FEELING OF OIL MOVEMENT. THE UNITED KINGDOM MARYTIME TRADE OPERATIONS (UKMTO) INFORMED THAT THEY HAVE FOUND A TANKER-CONNECTED EVENT REPORT IN HORMUZ. THE CORRECT DETAILS OF THE POSITION AND LOSS OF THE CREW HAVE NOT COME UP RIGHT NOW
Earlier Oman had caused damage to the tanker by collision of an unknown object in the north-east, while the last weekend also reported fire in three tankers. In addition, there is a constant struggle between Saudi Arabia and Yemen’s Iran-backed Houthi rebels in which Houthi rebels have been trying to target Saudi Arabia’s Ahmad oil pipelines
HOWEVER, RECENT SHIPPING DATA SHOWS THAT THE SUPPLY OF OIL AND GAS FROM THE HORMUZ ROOT STILL REMAINS AT ITS HIGHEST LEVEL AFTER FEBRUARY. ACCORDING TO THE FRESH DATA OF OPAC (OPEC) THE HOUTHI ATTACKS HAVE NOT AFFECTED MUCH ON THE TOTAL PRODUCTION OF SAUDI ARABIA AND SAUDI OIL PRODUCTION IN OCTOBER WAS RECORDED AT THE HIGHEST LEVEL AFTER FEBRUARY
US inventory and market stance:
According to US market data, around 90 million barrels have been recorded in US crude oil reserves last week. This heavy stock build-up tried to make pressure at prices, but geopolitical stress did not let the prices fall off
ANALYSTS FROM ING BELIEVE THAT EXPECTING BETTER SUPPLY FROM MIDDLE EAST AND INCREASING INVENTORY DATA IN THE U.S. HAVE WORKED TO PULL DOWN THE MARKET, BUT THE RISK OF ATTACKS ON UNCERTAINTY AND MARINE PATHS BETWEEN THE U.S. AND IRAN IS CONSTANTLY SUPPORTING CRUDE OIL
Conclusions for Crude Oil Traders:
It is time for traders from crude oil to trade on both sides. Fundamentally indicates a slowdown of increasing inventory in the U.S. and the production of Saudi to remain stable, but also can shock even disruption supplies on the Hormuz Root. As long as the 90 dollar level is saved on the Brent Crude, the bullock of the market will remain heavy. Keep a pan on diplomatic statements and inventory data before any new position