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  • Oil extends recent gains amid rising Mid-East supply risks, USD weakness.
  • US-China trade optimism also keeps black gold underpinned.
  • Oil bulls eye trade updated and geopolitics for fresh upside.

WTI (oil futures on NYMEX) caught a fresh bid-wave and reached the highest levels in eight days at 54.73 after supply disruption concerns mounted on news that an Iranian tanker was allegedly attacked by terrorists near the Saudi Arabian port city of Jeddah.

The Iranian news media cited that the explosion was caused by missiles incurred heavy damages to the vessel and oil is spilling into the Red Sea. However, the oil spill has been controlled. Further, Iran’s National Oil Company (NOC), in its statement, said that two missiles struck the Iran-owned Sinopa oil tanker setting it ablaze.

The geopolitical tensions continue to threaten to disrupt oil supplies from the OPEC’s producers, with political unrest rife in Iraq and Ecuador. Adding to this the Turkish-Syria conflict aggravates the Mid-East flare-up.

Further, trade-positive comments from the US President Trump, ahead of his meeting with the Chinese Vice-Premier Liu He, kept the buoyant tone intact around the barrel of WTI. The trade optimism boosts the market mood and dents the appetite for the safe-haven US dollar, which in turn renders positive for the USD-denominates oil.

All eyes remain on the Mid-East geopolitical and US-China trade developments ahead of the Baker Hughes US oil rigs count data for fresh trading impetus.

At the press time, WTI is seen consolidating the over 2% surge near 54.50 region, still up +1.80% on the day.

WTI Levels to watch