Crude oil struggles after yesterday's good gains
Crude oil soared yesterday on reports that Iran would stop any flow of oil through the Strait of Hormuz, which threatens the global oil supply and pushed crude strongly to the upside breaching $101 levels, also, the better than expected consumer confidence in US helped crude as well. Despite the lack of fundamentals from major economies, and investors closed their positions at the end of the year avoiding any unexpected losses in high uncertainty, crude have found a way to survive as the Iranian move is considered dangerous for the future of crude. Crude oil opened the session at $101.24 and reached a high of $101.26 and a low of $100.98, where it is currently trading around $101.34. Iran threatened yesterday to stop the flow of oil through the Strait of Hormuz if sanctions were imposed on its crude export, as Iran is trying to have its nuclear weapon and US along with allies are denying such a move, which could trigger military conflict with economies dependent on Persian Gulf oil. Iran has played the main role of keeping crude in high levels in the past period, as the foreign sanctions on the country is dangerous which will curb the global oil supply, and now, it is trying to enlarge its role and push crude to the upside again and again. On the other hand, crude had benefited from the encouraging confidence figures for the world's largest economy, as it reported a better than expected increase in the December figure, which indicated that the economy is getting stronger in the fourth quarter as signs showed this matter and the consumers' confidence helped in the equation as well by increasing the spending in the economy. But, we can see the soft movements in markets as investors closed their positions as we said in order to avoid any unexpected loss amid high uncertainty around the globe, where low volumes of trading keep the volatility high as well.