JAKARTA (TheInsiderStories) -The second alleged attack on tankers near the Strait of Hormuz in roughly a month has heightened concerns about oil security in the region and tensions between the U.S. and Iran, leaving at least one analyst suggesting an escalation in incidents could add $7 to the price per barrel.
Other analysts, including those watching gasoline prices, stress that it’s too soon for motorists to be alarmed about a surge in pump prices.
For now, however, oil prices have been paring back some of their earlier gains Thursday to trade off the session’s best levels.
The latest attacks “may fall off the radar, but senses are definitely heightened for now,” said DeHaan. This isn’t likely to have a lasting price impact at this point, though “as we learn more in the days ahead, there could be some shifts to that.”
DeHaan does not expect to see a rise in gasoline prices based off these tanker attacks. “I do not believe this situation will get out of hand, and there’s definitely no reason for motorists to panic.”
And for now, concerns over a potential slowdown in global energy demand remain in focus for traders.
That’s what’s kept a “like on oil prices,” said Birch. “If the U.S. and China manage to pause the trade war when the two countries’ presidents are due to meet in June, this would buoy economic prospects and allow the supply-side risks in Iran and the Gulf to push oil prices higher.”
The Federal Reserve is widely expected to strike a dovish chord when it meets this week, clearing the way for a July rate cut — the first in more than a decade — that almost 40% of economists in a Wall Street Journal poll are expecting.
While a hawkish Fed no longer looms large over this aging bull market, Nouriel Roubini, NYU economics professor and perhaps the media’s favorite permabear, now says the world “has an even bigger problem on its hands.”
In our call of the day, Roubini examines “the growing risk of a 2020 recession” and the specter of crisis in an already fragile global economy.
Last year, he warned of 10 potential downside risks that could lead to a global recession next year. A friendlier Fed, he says, removes one of them, but the others are still firmly in play and have emerged as more dangerous than before.
“U.S. equity markets have remained frothy since our initial commentary,” he wrote. “There are added risks associated with the rise of newer forms of debt, including in many emerging markets, where much borrowing is denominated in foreign currencies.”
Oil prices rose after United States (US) Secretary of State Mike Pompeo said Washington would take all necessary measures to ensure security in the Middle East on Monday (06/17). The areas continued to heat up after the attacked struck two ships crossing in the Gulf of Oman last week.
Brent crude oil futures rose US$0.27, or 0.4 percent, to 62.28 dollars per barrel. In the past week, Brent rose 1.1 percent.
Meanwhile, West Texas Intermediate (WTI) U.S crude oil futures rose 18 cents, or 0.4 percent, to 52.69 dollars a barrel. In the last session of the previous week, WTI rose 0.4 percent.
Reportedly by Fox News Sunday Pompeo said that U.S did not want to war. “We have done what we can to prevent this,” Pompeo said in Iran from being involved in this type. behavior”.
Strait Hormuz Pompeo stressed that the U.S. gets relatively little of its energy supplies through the strait, which lies between the Persian Gulf and the Gulf of Oman. Than 16 percent of U.S. petroleum imports came from the Strait Hormuz countries in 2018 such as Iran.
While, about 80 percent Oil supplies for countries in Asia, including China, Japan, India and South Korea. By than, the position of Strait Hormuz and around is Very important.
The Organization of Petroleum Exporting Countries (OPEC) plus Russia and other producers, the alliance known as OPEC +, has an agreement to cut production by 1.2 million barrels per day (bpd) starting January 1. This is the month and the group meets in the coming weeks. to decide on the next step.
Reportedly, after being identified, two tankers namely the Front Altair and Kokuka Courageous.
Kokuka Courageous belongs to the Norwegian company, when attacked this tanker was carrying crude oil. The ship was about to sail from Saudi Arabia to Singapore.
Whereas the tanker which was reported was attacked by a torpedo named Front Altair and carried an estimated 75 tons of petroleum refinery containing liquid and flammable hydrocarbons.
The Gulf of Oman is not far from the Strait of Hormuz where a shooting incident which was considered a form of sabotage occurred before. On the Strait of Hormuz is the oil trade route. There are 20 percent of the oil trade going through this route.
Written by Willy Matrona, Email: firstname.lastname@example.org