Crude Oil Prices Spike on Possible Oil Tanker Attack in Gulf of Oman

Oil Price Analysis and News

• Crude Oil Prices Spike on Oil Tanker Incident
• Rising Geopolitical Premium May Provide a Price Floor

Crude Oil Prices Spike on Oil Tanker Incident

Crude oil prices are soaring this morning with Brent crude rising as much as 3% following reports that there has been an incident in the Gulf of Oman. As it stands, the reason behind the fire of two oil tankers is still somewhat unclear with reports from Reuters, citing industry sources that a frontline oil tanker had been struck by a torpedo off the coast of Fujairah. Consequently, Brent and WTI crude futures have pared the entirety of yesterday’s losses.

Recent Attacks in the Middle East

The latest incident this morning has added to the growing number of events that have taken place in the Middle East with last month seeing two Saudi pipelines attacked by drones. As such, tensions in the Middle East are likely to be back on the rise, potentially putting a floor on an extension of losses if escalations were to increase.

Brent Crude Price: 1-Minute Time Frame (Intra-day)

Oil Impact on FX

Net Oil Importers: These countries tend to be worse off when the price of oil rises. This includes, KRW, ZAR, INR, TRY, EUR, CNY, IDR, JPY

Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.

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--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX