The oil prices sink in the market despite the geopolitical tremors headlining the national news. The commodity sinks along with gold despite the numerously reported air strikes in the previous days. Investors look past the ongoing conflict, leaving oil prices lower.
Forecasts from last week predicted a surge in commodity prices today as geopolitical crisis escalates. According to analysts, the Syrian bombing may help push the commodity prices higher this week as they pose as a great safe haven.
Investors managed to shrug the ongoing geopolitical; they are betting that the turmoil won’t escalate to something problematic this week.
Reports and headlines revealed that the airstrikes were “surgical” and managed to seamlessly avoid the Russian targets. The news was better than what most expected, and was also what investors needed to remain calm despite future treacherous debacles.
Furthermore, the strikes were abruptly followed by a major pullback. The analysts expected last week as they predicted an all-out geopolitical tension from the major countries, bringing investors to their familiar safe haven.
Brent crude was trading lower than the stellar predictions from last week. The oil’s benchmark managed to fall by a total of 0.9% this Monday in the early Asian trading. It managed to settle at $71.96 a barrel; relatively low from last week’s forecast but still a great price for the commodity.
Meanwhile, the West Texas Intermediate was also trading lower this week despite top notched forecasts last week. It managed to drop by a total of 0.8% at $66.87 on the trading session. Both of the Brent and WTI open the week lower than forecasts from last week.
Furthermore, the same geopolitical upbringing managed to keep the oil prices higher last week. As a matter of fact, the oil prices managed to rally past the lucrative $70 price point due to the ongoing tremors in the Middle East.
The oil price managed to close on a whopping price last week, and investors forecasted that it may soon rise to $100 a barrel price. Moreover, last week’s closing price was the highest the commodity has experienced since late 2014.
On the other hand, if a big geopolitical tension erupts this week we can expect a massive price movement this week. The market can also expect for the yen to rise and for Japan’s domestic defensive stock to eventually climb the ladder and outperform all the international stocks.
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