The topic we will present has to do with Oil and it will be specifically focused on the fact that Oil prices are rising.
Once it was confirmed by the Pentagon that the Iranian commander was killed in a US air strike in Baghdad, the price of oil rose by 3 percent on Friday, but what is more important and generates concern is the conflict between these two nations, which can cause an interruption in the region of energy production and this means that oil prices are rising.
Why are oil prices rising?
Because of a defensive action taken by the U.S. military, this for the protection of U.S. personnel, which killed Qasem Soleimani, this is released by the U.S. Defense Department on Thursday night, the DOD indicated that it was from the president of the United States a directive, in the case of the Brent earned $ 2.42 or in itself 3.6 percent to reach $ 68.67 for the business, despite quoting 69.50. Now the one for the U.S. West Texas Intermediate had a profit of $1.87 or 3 percent, bringing the barrel of oil to $63.05. Previously WTI was trading at $64.09, which was the highest since April.
It is possible that Iran in the same way as the militia that supports Iran in Iraq, this attack will provoke important reprisals, this was said by the global analyst of Stratford Matthew Bey, in this way one comes to the conclusion that there is the probability that they will support the attacks against the oil infrastructures in the Persian Gulf and in the Middle East, As Bey told CNBC, if tensions increase, Tehran may consider attacks on Saudi Arabia's oil infrastructure, which in a way says that the capacity of these is of great will and to attack the vital points may last for a considerable time the reconstruction in Saudi Arabia.
What can be expected from here on in terms of Oil?
The doubt for many is the reaction that Iran will apply, so it is possible that oil prices will go up, by 3.4 percent, this has been said by Amrita Sen from Energy Aspects, it has been seen before from what Iran has been able to do in Saudi Arabia, if something similar is done again, there will be attacks against the Saudi facilities, if it is possible that these will take place at some point, what can happen is that the profits for the oil will be able to be returned.
The vision of the market is not as precise as it seems, it is possible to think that the market is full of oil but now it is possible that this fact is not so sustainable, the attack was just when several facts have occurred, among which is the reduction of oil production by OPEC, this happened in December, then there are also the facts against the Saudi oil facilities Abqaiq and Khurais, the attacks of unmanned aircraft, which hit the market, which generated the increase of 8 percent in the WTI and Brent Thus we arrive at the end of this explanation regarding Oil, where the details that influenced Oil prices rise were also specified.
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