Crude Oil finished higher on more sanctions on Iran and China's GDP numbers
Crude Oil rose from low levels after the US tightened the belt on Iran with tougher sanctions Thursday rebounded from low levels at 84.24 and continues its Northside bias despite the Chinese data showed the slowest growth pace in China in 3 yrs.
WTI Crude Oil opened Friday's session at 85.73 and reached so far a high of 86.64 and a low of 85.57, where it finished trading at 87.07 bbl +0.70 (+1.15%)
Market analysis are expecting now that China should come out with further interest rate cuts or changes to the bank reserve ratio to stimulate internal growth as they must announce further easing monetary measures to halt the slowdown in the growth pace next quarter.
On the other hand, Crude Oil rebounded sharply Thursday from low levels after the Obama's administration sanctioned the National Iranian Tanker Co. (NITC) and 4 other companies for Iran's Oil trade, as it would freeze American assets belonging to the tanker operator and block the company's transactions from the US financial system.
These steps from the United States pushed Crude Oil sharply North as they will raise the tensions between Iran and the West which could well end with a closure for the Strait of Hormuz, as Iran warned before after the EU embargo on Iranian Crude Oil started 2 wks ago. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.