Oil opened with a gap up in Sunday evening (US time) futures trade:
Escalation in the Middle East centred on two recent items:
- Late last week a Trafigura-operated fuel tanker was hit by terrorist missiles.
- Over the weekend three US servicemen were killed in an attack
After the gap up oil has dropped back:
![oil update 29 January 2024 2](https://images.forexlive.com/images/oil%20update%2029%20January%202024_id_f20ba3b9-8672-4c67-b1fe-baef11151458_size900.jpg)
Curiously I could do a similar update on gold, it too gapped higher:
Its a little different in price action, it covered its gap and began heading higher:
![gold gap 29 January 2024 2](https://images.forexlive.com/images/gold%20gap%2029%20January%202024_id_904ed510-07e5-4fe7-ac37-581a6f3e7116_size900.jpg)
Does oil follow higher?
Some commentary from ANZ suggest that answer should be 'yes', noting a change in the supply outlook:
- "Disruptions to supply have been limited, but that changed on Friday after an oil tanker operating on behalf of Trafigura was hit by a missile off the coast of Yemen,"
- "With oil tankers linked to the U.S. and UK now under threat of attack, the market is likely to reprice the risk of disruptions."