Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures saw a bit of a boost during the Monday Asian trade session. Traders are watching, rather closely, mounting tensions in the Strait of Hormuz. On Friday, the Iranian Navy seized an oil tanker flying the flag of the United Kingdom.
There is video showing the Iranian navy defying a British warship. The United Kingdom says that this is a grave act and is considering all option available to them.
Also in the headlines, Libya has reported that their largest oil field has been shut down. This is also sparking supply concerns out of the region.
As of 4 am GMT, the international Brent crude futures contract, was trading up 1.4 percent or 85 cents to fetch $63.32 a barrel. The Brent contract had been up a dollar earlier in the session.
West Texas Intermediate (WTI) crude futures, for front end delivery, also gained ground. This contract added 0.8 percent or 47 cents to trade at $56.10 a barrel.
The WTI contract lost over seven percent last week and the Brent contract six percent on the week.
Traders watch Geopolitical Tensions Supporting Crude Futures Contracts
Traders in the oil markets are watching mounting geopolitical tensions. Especially in the Middle East between the Iran, the United Kingdom and the United States as the Iranian navy has seized a U.K. flagged oil tanker. There is video footage of the Iranian Navy defying a U.K. naval warship as they seized a tanker in the Strait of Hormuz on Friday.
The oil markets are also watching news out of China and the United States. Both nations are restarting trade talks to bring an end to the bitter trade war, now going into its second year. Some companies, out of China, are reportedly looking to buy U.S. agricultural products. This is seen as a potential positive development.
