European stock markets are bouncing on bullish oil market developments. Stocks began rising minutes after the opening bell as news of an incident in the Gulf of Oman this morning involving two oil tankers that were reportedly attacked by a torpedo had a strong impact on black gold.
Photo by Shaah Shahidh.
Additionally, Kazakhstan said it has cut its oil output to 1.76 million barrels per day, a cut significantly above its obligation. The Kazakh government also said it was in favour of an extension of the OPEC+ deal.
The third bullish news came from President Putin who said Russia’s relationship with the US is worsening after Washington threatened sanctions against companies involved in the Nord Stream 2 gas pipeline project. Putin said countries (like Germany) depending on Russia’s energy were at risk by such actions.
Despite a sea of red at the opening of EU markets, all main gauges are now trading higher than yesterday’s closure. The best performance is being brought by the DAX-30 index were the spike on oil markets had the strongest impact so far. Prices trade towards 12,170 pts with 12,220 pts in sight. A clearing of this technical level would unlock a bullish road to 12,235 pts and 12,315 pts by extension.