The currenty trading week has been controversial for the international market of crude oil. Chances are, the market is going to be relatively neutral throughout the rest of the week. Brent oil is trading around 63,50 dollars per barrel while WTI costs 56 dollars per barrel.
Unstable Oil Prices
At this point the oil price seem to be under pressure related to the market fears that the global economy is slowing down, which means decreased demand for crude oil since oil si coinsidered the blood of the global economy. At the same time, the recent poor economic figures released in the United States gives the bulls some hope that the Federal Reserve and other central banks will start stimulating their economies, which will make their currencies weaker and will support crude oil.
News Backing Oil Prices
In the meantime, the oil prices keep on feeling. political tensions in the Middle East. The resent arrest of a British oil tanker by the Iranian revolutionary troops raised a lot of concerns regarding the security of international oil tankers in the region. The UK called for creating standalone armed forces for defending those vessels going through the Straight of Hormuz and even started attracting the British Navy for that purpose.
The security of transporting crude oil in the region is now a big issue, which is clearly affecting the market and backing the prices.
