Oil Rises After Cargo Vessel Seized in Iran

Oil prices turned positive on Tuesday after reports that Iran had seized an U.S. cargo vessel raised geopolitical tensions and concerns about the security of Middle East crude shipments, traders said.

Futures of U.K. North Sea Brent LCOc1, the more widely-used global benchmark, were up 55 cents at $65.38 a barrel by 10:20 a.m. EDT (1420 GMT).

U.S. crude futures CLc1 were up 75 cents at $57.74 a barrel.

Iranian forces seized a U.S. cargo ship, directing it to an Iranian port, Saudi Arabia’s Arabiya TV reported. [ID:nL8N0XP4CA]

Oil prices were down earlier on expectations that industry data due later in the day for the American Petroleum Institute would show another build in U.S. crude stockpiles to record highs last week.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza