Saudi Strikes, a Fed Meeting and More

Ok guys I’m back from my holiday and I should be posting regularly once again.

Rather than getting back into a quiet week it seems that everything has kicked off and the market is back into its seeming panic mode.


So let’s start with what’s already happened lately; the strikes by the Houthi rebels (or perhaps Iran).

Approximately 5% of world production has currently been taken offline. A crazily high number. It will be interesting to have a look at the drawdown figure in the API numbers this week!

The strikes have naturally caused a significant amount of market churn in Saudi Arabia with a sizeable fall in the market index. Similarly, it looks pretty likely that the commodities markets will be soaring at the open shortly; especially after the comments of this man:

That’s right Mike Pompeo.


Despite the instant comments and admittance by Houthi rebels that they were responsible for the destruction, Pompeo and the presidency insist that it was, in fact, Iran responsible for the strikes.

In response, Iran retaliated stating that it was prepared for a full-fledged war with the U.S.A.
(Source: https://news.sky.com/story/iran-says-its-ready-for-war-with-us-after-saudi-oil-attack-accusations-11810252)


Once again, the prospect of war in the Middle-East is likely to cause a vault in oil prices at the market open. The result of these strikes and increase in tension could cause the price of oil to jump $10 within the next few days (maybe even hours) according to some sources.

Interestingly, if you compare to a chart in a previous post showing the narrowing range in oil, this could be the technical push required to rocket oil back up towards $70 or higher per barrel. (Linked Below).

https://lythoughtsonfinance.blogspot.com/2019/07/where-now-for-oil.html


So, what else is happening this week?


Well, FOMC meetings, US rates, UK inflation numbers, RBA meetings and more. But, the bug mover this week will be oil no doubt.