The tension in the middle East pushes oil to $ 70 and punishes the Bags

2020 begins with the bad news. The reverberations of the tensions in the middle East are felt in the markets all over the world. Since the murder of the general

The tension in the middle East pushes oil to $ 70 and punishes the Bags

2020 begins with the bad news. The reverberations of the tensions in the middle East are felt in the markets all over the world. Since the murder of the general iranian Qasem Soleimani on the part of american troops on January 3, the price of oil has risen by nearly 6%, to over 70 usd per barrel of brent. They are ten dollars more than what the Spanish Government provided for this year in the latest budget plan they sent to Brussels. The Bags are also drawn in a year marked by instability.

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The Brent oil moderates its ascent after the attack on the general iranian Soleimani Greece, Cyprus and Israel give the green light to the plan of the gas pipeline in the eastern Mediterranean Ecuador quits OPEC, to escape the cuts in production

On the morning of Monday, the German Dax fell by around 1.5% and the CAC in paris, 1%. In Spain, the Ibex is limited to fall 0.7%. Throughout the day, these declines have been moderate. On the other side of the world, the japanese Stock market had closed on Monday, with a plunge of nearly 2%.

The crude oil did not exceed $ 70 since last September 16, when it came to playing the 71,95 during the day, but closed below that barrier. To find a moment in which to close above the $ 70 you have to go back to the past month of may.

the rise in The price of oil occurs in a context of an upturn in the sector in the last four years, after that at the beginning of 2016 to touch your soil for under 30 dollars. Since then, the exporting countries led by Saudi Arabia and Russia have embarked on a policy of cuts of the production, with that achieved by the barrel of brent on the site in the past year between 60 and 70 dollars.

The current tensions in Iran and Iraq come now to join this trend, with a few effects by now difficult to calculate. Michael Pearce, an economist of Capìtal Economics, believes that oil prices will continue to grow “much more” if Iran is come of the death of Suleiman, either by attacking oil installations saudis, as it did in September, or trying to block the strait of Hormuz, through which flows 20% of the world's supply of crude oil, according to statements of this economist collected by the Financial Times. The Department of State of the united States already warned Sunday of the risk of Tehran attack installations of its great rival within the region, Saudi Arabia.

The fear for the increase of the conflict that international also made itself felt in other markets considered as a value shelter. The price of gold has jumped up to 1.579 dollars an ounce, its highest in almost seven years.

Updated Date: 06 January 2020, 16:00

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