Brent crude oil price jumped during the Asian session after tensions between the US and Saudi Arabia emerged. However, will the XBRUSD pair will resume the downward trend?
15 October, OctaFX – Tensions started when a Saudi Arabian journalist entered the Saudi consulate in Turkey. Reports have since emerged that he may have been killed.
US-Saudi Tensions Rise
During the weekend, the US president said that Saudi will have a price to pay if it is determined that they ended the journalist’s life. Soon afterwards, Saudi said that it will retaliate against the US. This was a major development because Saudi and the United States are close allies and Saudi is one of the biggest exporters of crude oil.
Brent Crude Oil Jumps
Last week, the price of Brent crude oil reached a high of $86.59. It then started a sharp decline after increasing inventories and the price reached a weekly low of $78.98.
In the Asian session today, the price jumped as traders started to worry about US-Saudi relations. It reached a high of $81.58. The RSI moved from a low of 22.73 to a high of 45 while the current price is along the middle band of the Bollinger Bands.
It is likely that the XBRUSD pair will resume the downward trend.
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