Oil Traders are Waiting for Iranian Strike on Israel
11.04.2024, 11:53

Oil Traders are Waiting for Iranian Strike on Israel

Oil prices are facing downward pressure this week, with Brent crude dropping by 0.4% to $90.28 per barrel. On Wednesday, prices dipped even further to $89.00 per barrel amidst significant geopolitical tensions, particularly concerning potential missile strikes from Iran on Israeli military and government facilities. Despite these concerns, investors are skeptical about the likelihood of such an escalation and are withdrawing capital from crude assets. Last week, $103.8 million was pulled out of the United States Oil Fund (USO), followed by another $49.1 million this week, indicating a broader market uncertainty prompting this move.

Market unease has been exacerbated by March inflation figures, which surpassed expectations. U.S. 10-year Treasuries yields surged to 4.56%, the highest since November 13, 2023, while bets on interest rate cuts by the Federal Reserve (Fed) in June plummeted to 16.4% from 56.1%. Institutional investors are increasingly skeptical about the prospects of a soft landing for the American economy in 2024, which is contributing to the negative sentiment surrounding oil prices.

Adding to the bearish sentiment, the Energy Information Administration (EIA) reported a substantial increase in oil inventories, rising by 5.8 million barrels last week compared to a forecasted increase of only 900,000 barrels. This marks the third consecutive week of inventory growth, prompting the EIA to revise its oil production forecast upward by 280,000 bpd to 13.21 million bpd.

While Brent crude prices are currently hovering around $92.00 per barrel, a significant breakthrough towards $100 per barrel seems unlikely without a serious escalation of the Middle East conflict, which is not the prevailing scenario at present. Instead, prices are more likely to roll back to the support level at $81.00-83.00 per barrel, particularly in the second half of April.

  • Name: Sergey Rodler
Quotes
Symbol Bid Ask Time
AUDUSD
EURUSD
GBPUSD
NZDUSD
USDCAD
USDCHF
USDJPY
XAGEUR
XAGUSD
XAUUSD

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location