International Trend: Iran Tanker Exploded In Saudi Waters. Textile Market Is Affected

Saudi Arabia media reported on the morning of 11 local time, an oil tanker exploded in the Red Sea area near the Jeddah port in western Saudi Arabia that day, resulting in a large number of crude oil leakage. The report shows that the tanker belongs to Iran national gas company, but the specific cause of the explosion is still unknown. Affected by the news, international oil prices surged.

As of 15 hours in Beijing on October 11th, domestic crude oil jumped 14.8 yuan / barrel, or 3.27%. Brent crude oil rose to 2.12%, WTI crude rose 1.61

According to the Iran student news agency, the cause of the Iran oil tanker explosion is under investigation, and experts say it may be subjected to a "terrorist attack". Then at 14:05, Shana, the official website of Iran's Ministry of petroleum, pointed out that the Iran tanker explosion was likely to be attacked by missiles.

The 20 year old tanker exploded at about 60 miles southwest of Jeddah, the maritime tracking website showed. The ship was formerly called Susan Gil. It was sailing to the Suez canal and the Mediterranean Sea.

In recent months, there have been many incidents involving Iran and tankers. At the end of last month, the Iran government released the tanker after a two year old tanker was hoisted and detained by the Iran Revolutionary Guard.

In July this year, the British seized the tanker named "Stena Impero" in the Strait of Hormuz, on the grounds that it was suspected of violating maritime regulations. Two weeks ago, the United Kingdom seized a Iran tanker in Gibraltar waters, on the grounds that it was suspected of violating EU sanctions.

Analysts say that oil traders seem to underestimate the risk premium in the Middle East, and the frequent tanker incidents in the Strait of Hormuz are worthy of attention.

Forexlive analysts pointed out that the oil price increase was limited in the past few days, but after the news spread, the US oil returned to the US $54 mark, hitting a week's high position, and it is expected that this news will bring more bullish sentiment in the short term.

Reuters analysis pointed out that since the Saudi oil attack case, the tension in the Middle East has continued to heat up, especially the relationship between Iran and Saudi Arabia. This undoubtedly has a huge impact on the international oil market, which accounts for more than 5% of the world's oil supply in the two countries.

Many analysts of chemical fiber textile said that the Saudi incident may have a certain impact on crude oil in a short time, but it has little effect on the chemical fiber textile industry. At present, the decisive factor of leading the chemical fiber textile industry chain is terminal demand.

As we all know, textile people almost all year round, machines 24 hours, and holidays. But this year, under the pressure of inventory and capital, some manufacturers choose to stop production and leave during the eleven period, and reduce the pressure of storehouse by reducing the start-up rate.

Therefore, this eleven long holiday, many textile people enjoy 3-5 days of vacation, some manufacturers even extend their vacation to 7-10 days. Naturally, this greatly reduces the power of weaving manufacturers before stocking and purchasing raw materials.

No one can predict accurately the future market, even if the demand is not strong, but the market itself has the function of self regulation. It may still be time to reach the balance of supply and demand, but the peak season will come back. Source: CCTV news, Kim ten data