ZuluTrade Blog

Market Recap – Oil supply shock

Market View | Monday, September 16, 2019 10:47 AM GMT

Drone attacks reported on two oil-processing facilities in Saudi Arabia, on Saturday. US secretary of state, Mike Pompeo, blamed Iran, but later, in a televised statement, Yemen Houthi rebels took the responsibility of the attacks. No casualties reported and the fires were under control later on Saturday.

It remains to be seen, how far the world’s oil supply will be affected or if it will be affected at all. The worst case scenario has been that 5 million barrels per day will be off the market, which is half of Saudi Arabia’s daily production and 5% of the world’s daily production. At the New Zealand’s open, financial markets sent Brent 12.14$ higher from Friday’s close, USDCAD 70 pips lower and EURNOK 685 pips lower.

All three gaps have decreased. Before the New Zealand’s open, Questin de Pimodan, the chairman of Aramco, announced that they should be able to have 2 million barrels a day back online, by tomorrow”

Traders of the ZuluTrade community that focus on cryptocurrencies will have an interesting day, as regulators in Basel, question Facebook officials over the cryptocurrency Libra.

Macro releases: China’s macro releases disappoint with industrial production growth falling to 4.4%. Full economic calendar is here.


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