WTI jumps 3.5% to $ 53 on Gulf of Oman oil tanker explosion

Thursday,   13-Jun-2019   12:43 PM (IST)

WTI (futures on Nymex) caught a fresh bid-wave in the European trading this Thursday, quickly reversing Wednesday’s 4% drop, as the buyers cheered fresh supply disruption risks arising from the oil tanker explosion in the Gulf of Oman. According to the latest reports, an incident occurred in the Gulf of Oman after two oil tankers exploded. This comes a month after an attack on four oil tankers off the UAE in the Gulf of Oman. However, it remains to be seen If the prices can sustain the relief rally, as the sentiment remains weighed down by the Hong Kong protests over the extradition bill and escalating US-China trade war, as the US President Trump is prepared to impose higher tariffs on additional $ 325 billion worth of the Chinese goods. Moreover, the global demand growth forecast downgrade by the EIA combined with an unexpected rise in the US crude stockpiles could also keep the bounce shallow. Markets will continue to eye further updates on the Gulf of Oman incident and trade developments for fresh cues on the prices.