OIL rises to $85 as geopolitics tensions rise and global macro improves

Oil prices gain today slightly, with Brent reaching $84.5 per barrel, before the API report which will be published at 8:40 PM GMT. The main reason for higher oil quotations is not only stronger than expected world macro readings, signalling still strong demand but also geopolitics.

• Taiwan Defence Ministry detected 28 Chinese military aircraft operating around Taiwan, on Wednesday, despite military drills ended officially on last Friday. Also, China's major state-owned banks were seen swapping Yuan for US dollars in offshore foreign exchange market, fuelling some speculations.
• The Gasa region and Rafah is also in the world market's spotlight, as Israeli IDF operation is continued despite criticism from the world leaders and rising tensions. Israeli tanks were seen yesterday in centre Rafah, near the border with Egypt. Iranian Tasnim News said today that Teheran sent sea-launched medum range ballistic missile 'Ghadr' to Houthis, which may be a signal of more intensify conflict on the Red Sea. 
• The UN Security Council convened an emergency meeting over Israel’s ground invasion of Rafah. Spain, Ireland and Norway recognised the State of Palestine formally.

OIL (M15)

Futures on OIL rise 5% since the local lows, since last rollover near $80 per barrel. At the same time, futures on US500 are clearly under a selling pressure and if oil bullish momentum persist, we can expect another reason for correction on Wall Street.

Source: xStation5