The North American trading session has simply been a celebration of U.S. domination as the U.S. dollar has returned to the ‘King Dollar’ throne (at least for a day) and U.S. equity markets had one of their best days in recent weeks.
Brent crude oil dropped towards $55 a barrel on Tuesday as Iran and six world powers entered a final day of talks over a nuclear deal that could see the energy-rich country increase oil exports to world markets.
Iran talks go into overtime causing some traders to believe that they may actually get some type of a deal done. The crude oil market today will be torn between focusing on the renewed strength in the dollar versus Iran nuclear talks that at least in the short term like they are going into overtime.
Crude oil mounted a strong surge last Thursday as Saudi Arabia-led forces carried out a series of airstrikes against Houthi militants in Yemen, part of which is bordered by the Bab el-Mandeb strait, an important shipping “chokepoint.”
Geopolitical tensions escalated dramatically over night as Saudi Arabia launched military operations including air strikes in Yemen. The Saudis claim the action is to counter Iran-allied forces besieging the southern city of Aden where the U.S. backed Yemeni president had taken refuge.
Royal Dutch Shell is planning further job cuts in its UK North Sea oil and gas business in 2015, the company said on Thursday, just a week after a package of tax cuts from the Treasury aimed at encouraging growth in the industry.