London, 6 Janaury 2016
Oil prices jumped on the first trading day of 2016 as Middle East tension outweighed a selloff in financial markets around the world. Oil markets remain oversupplied and depressed, but geopolitical flashpoints have a historical tendency to disrupt market trends. Over the weekend, Saudi Arabia carried out a mass execution of 47 prisoners, including a prominent Shiite cleric Nemer al-Nemer. The executions prompted condemnations from around the world, but in Iran protestors threw Molotov cocktails at Saudi Arabia’s embassy, setting fire to the building. Iran’s Supreme Leader Ayatollah Ali Khamenei said that Saudi Arabia would face “divine retribution” for executing the Shiite cleric.
Source: Commodities Now feed