Oil prices have risen above $100 per barrel due to increasing signs of energy market disruptions, even after 32 countries agreed a deal for the biggest ever energy reserve release. Reports in the media stated Iran attacked two international oil tankers near Iraq and Kuwait. These latest developments show that the Middle Eastern conflict is now going beyond the Strait of Hormuz.
The attacks on the oil tankers have only further heightened concerns over supply disruptions, following on from Iran’s initial warning that no oil will pass through the key shipping lane.
Although prices have climbed back above $100 per barrel, prices were kept off its weekly high of $120 per barrel as several countries have stepped in to prevent any potential supply shocks. The International Energy Agency according to reports is preparing to release a record 400 million barrels of oil later this week and U.S President Trump also committed yesterday to releasing 172 million barrels of oil from their Strategic Petroleum Reserve later this week, again to counteract any supply disruption as the war in The Middle East continues.
On the economic front, later this afternoon we have the usual weekly Job’s data in the U.S in the form of continuing and initial jobless claims. Initial Jobless Claims is probably the more important as it shows the number of new people claiming and this release is set to show a further 2,000 claims from last week which only further supports the struggles the jobs market in the U.S is currently experiencing.
GBP/EUR 1.1570 GBP/USD 1.3367 GBP/AED 4.9109
GBP/AUD 1.8760 GBP/CHF 1.0443 GBP/CAD 1.8161
GBP/NZD 2.2675 EUR/USD 1.1539 GBP/ZAR 22.1698