CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

WTI jumps to 3-week highs as US-Iran tensions flare up

2019-06-20 17:00

  • Rallied hard on escalating Middle-East tensions after US drone downed.

  • Supported by the drop in US crude stockpiles, OPEC meet agreement, USD declines.

  • Focus on US-Iran geopolitical tensions and US data for fresh directives.

WTI (futures on Nymex) extended its bullish momentum and went on to hit fresh three-week highs at 55.86 in early Europe, now consolidating the latest uptick around 55.50 levels.

The latest move higher was mainly prompted by the latest reports that fanned the ongoing US-Iran conflict, citing that a US spy-drone was downed by Iran. Both sides confirmed the reports while the Iranian Islamic Revolutionary Guard Corps (IRGC) Commander said that downing of the US drone sends a clear message to Washington. Tensions have been rising between the US and Iran and therefore, in the Middle East after last week’s attacks on two tankers near the Strait of Hormuz.

Moreover, the sentiment around the black gold remains underpinned after the OPEC and other producer agreed on a date to meet and discuss the oil output cuts extensions. Additionally, a bigger-than-expected drop in the US crude inventories also offers fresh impetus to oil bulls. The Energy Information Administration (EIA) said on Wednesday that the US crude stocks fell by 3.1 million barrels last week, compared with the expectations for a draw of 1.1 million barrels.

Furthermore, the oil traders cheer the ongoing slump in the US dollar across its main peers after the US Treasury yields got sold-off into an overtly dovish FOMC. The Fed left the interest rates unchanged but pointed towards rate cuts in the coming months. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.

Markets now remain glued to the development around the US-Iran conflict while the US macro news will be closely eyed for fresh USD trades and its eventual impact on the US oil.

WTI Technical Levels




This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD +0.12% 1.30905
    EURUSD +0.07% 1.18256
    XAUUSD +0.18% 1908.31
    XTIUSD -0.37% 40.549
    NAS100 -0.01% 11678.1
    US30 -0.01% 28407.3