Oil finds bid tone as Saudi-Iran hostilities increase

By FXStreet FXStreet (Bali) – Oil prices are trading around 37.80, having traded as high as 38.25, with an up-gap at the open of markets in Asia, as the tensions in the Middle East between Iran and Saudi Arabia escalate.

Saudi-Iran relations worsen

Following attacks on Saudi Arabia’s consulate in both Tehran and Baghdad, Saudi Foreign Minister said to have cut relations with Iran, asking the Iranian diplomatic mission to depart within 48 hours. The protests against Saudi Arabia come after the Oil-rich country executed a prominent Shiite cleric Nimr al-Nimr.

Oil key levels

The main levels to trade Oil today can be found, on the upside, at 38.00, 38.50 (daily R2) and 39.00, while on the downside, 37.50 (low in Asia), 37.00 round number (also daily pivot) and 36.30/50 (daily S1 + mid-round number).
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Source:: FX Street