On Monday, the 8th of July 2019, Crude oil prices extended its Friday’s (July 5th) rally, almost entirely goaded by a mounting tension around Tehran’s nuclear program alongside a better-than-anticipated US employment figure.
While this report was being prepared, during morning European trading hours, UK crude was up by 0.30 percent to $64.57 per barrel, while US West Texas Intermediate crude was up by 0.26 percent at $57.69 a barrel. While a bundle of troublesome issues including several attacks on oil tankers, some military attacks at oil facilities near Saudi border and downing of a US unmanned drone, had been storming the strategically significant Strait of Hormuz and the Gulf ocean offshore of Qatar, a Vienna based consultancy JBC Energy said, “The weekend was dominated by Iran, with the announcement that uranium enrichment had breached JCPOA limits being greeted by a chorus of warnings from European states not to push enrichment too far”.
Nonetheless, last week, Iran said that it had boosted its uranium enrichment to 5 percent, higher from a 3.6 percent level it was allowed to store under 2015 Iran nuclear treaty as an act of retaliation against latest US sanction on its oil-dependent economy.
Aside from that, a strong employment figure in June, which revealed US economy added 2,24,000 new jobs in June, its best figure in five months, would likely to add a bullish breeze to crude oil future prices, meanwhile easing some concerns related to global slowdown risks.