Crude oil saw the biggest daily gains in over a month as markets received news that a top Iranian general, Qasem Soleimani, was killed in an airstrike ordered by President Trump. Analysts believe that this conflict could disrupt the global oil supply since the Middle East is home to both major oil-producing countries and crucial supply routes.
Investors emphasized the significance of this event Friday morning as crude oil futures surged. Major US equity index futures were also shaken by the news and fell more than 1%.
Here’s a look at markets today:
- Crude Oil futures (CL) were up as much as 4.76%
- Micro E-mini S&P 500 futures (MES) were down as much as -1.6%
- Micro E-mini Nasdaq futures (MNQ) fell as much as -1.76%
- Micro E-mini Dow futures (MYM) saw losses as much as -1.42%
The chart above, created for FREE using the NinjaTrader platform, displays price action in Crude Oil futures since its relative low in early October of 2019. Also interesting to note from a technical analysis perspective is a Golden Cross pattern which occurred on the last trading day of 2019.
As this situation develops and further details unfold, turbulence can be expected in global commodities markets as well as stock indexes. Traders should always employ risk management and take appropriate measures to protect capital in case of unexpected market swings.