Oil price is about to take off

13 April, 2018

The oil price has pulled back today after hitting a 3 year high in yesterday’s trading session but the drop is seen as temporary as the US gears for missile strikes against Syria after the former launched a chemical attack against it’s own people..

The Majority of Oil supplies come from the middle east where Syria is located and even before this event the US was threatening to re-impose sanctions against Iran for their alleged Nuclear Weapons program which would drastically cut the amount of supplies from the region.

Now with a potential war in the making, analysts predict that the price of oil will be dictated by the size of the conflict and how many countries get involved.

If the conflict is contained to Syria the oil price may not have much further to go, but if it should spill over the borders or Iranian facilities are targeted the potential for oil to soar past $100 is a real possibility.

"We're at the pivot point. It's a binary outcome. If it's a pinprick in Syria, we've seen the price gains. We'll sell off afterwards. If Iranian assets, in particular in Syria, get hit, it's a game changer," said John Kilduff, energy analyst and founder of Again Capital.

"If this is all contained to Syria we've probably seen the bulk of the rise. The issue you get into is if there's a strike on Iranian assets in Syria, a direct hit on Saudi, or a scenario where the Saudis and Israelis team up to take it to Iran directly, that's where you get into triple-digit oil price land," he added.

Russia has vowed to back Syria in the conflict and has vowed to shoot down any missiles that are launched against the country as well as take out the bases where they came from.

Seeing as the missiles would be launched from a US ship it means that the Russians are prepared to attack the American military who would respond with alarming force creating an all-out war and we would see oil prices soar to highs that haven’t been seen in many years.


Source link  
Aussie dollar up on Chinese data

The Australian dollar remains firmly above the US70c mark in today’s trading session after a strong round of data out of China alleviated...

Pound may hit $1.37 by years end

The British pound is expected to face increased volatility over the coming months as the deadline approaches for the UK to leave the EU at the end...

Has the US dollar peaked?

The US dollar has made significant gains against all the major currencies over the last month as worries over trade tensions between...


Pound may suffer in the long term

The British pound continues to power ahead in today's trading session after yesterday's developments in the British parliament that many see as ending...

Gold needs to remain above $1300

The gold price has staged a substantial rally since last week after the US Federal Reserve latest board meeting where they stated that any move...

Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...


D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...

  


Share it on:   or