Crude oil price dropped after Iranian revolutionary guards seized an Iraqi oil tanker in the Gulf which they said was smuggling fuel amid heightened tension with the West.
5 August 2019, OctaFX – The price of crude oil declined today after Iran announced that it had captured a vessel in the Persian Gulf. The capture of the tanker, which was carrying more than 700,000 liters of oil, happened on Wednesday last week.
The Iranian Revolutionary Guard said that the vessel was captured for smuggling crude oil. The capture of the Iraq ship happened a day after the United Arab Emirates (UAE) officials traveled to Iran to discuss maritime border cooperation.
Crude oil price technical forecast
The XBRUSD pair declined to an intraday low of 60.90 after Iran announced it had captured a ship at the Strait of Hormuz. On the hourly chart, the price was below the 25-day and 50-day moving averages while the price was along the lower line of the Bollinger Bands. The RSI moved close to the oversold level. The pair will likely continue moving lower to test the support of 60.50.
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