Crude oil suddenly surges back above $90
Middle East risks are back again
A few days ago, the market was still trading the temporary reopening of the Strait of Hormuz for navigation—then the situation changed again over the weekend.
The U.S. once again attacked an Iranian target near the Strait of Hormuz. Tensions between the U.S. and Iran have escalated again. Today, Brent crude rose by more than 3% at one point, breaking back above $90, while WTI also returned to around $85.
This is exactly why I felt earlier that you shouldn’t be too quick to turn bearish on crude oil.
The Strait of Hormuz accounts for about 20% of global oil transport. As long as there isn’t genuine stability restored here, there will always be a layer of war premium embedded in oil prices.
So the most troublesome part for crude oil right now is that news can move the price in a single direction day by day.
If negotiations make progress, it falls. If military conflict escalates, it jumps up immediately.
After crude oil manages to stand back above $90, we have to keep a close watch again on the Middle East line.
$CL $BTC
Middle East risks are back again
A few days ago, the market was still trading the temporary reopening of the Strait of Hormuz for navigation—then the situation changed again over the weekend.
The U.S. once again attacked an Iranian target near the Strait of Hormuz. Tensions between the U.S. and Iran have escalated again. Today, Brent crude rose by more than 3% at one point, breaking back above $90, while WTI also returned to around $85.
This is exactly why I felt earlier that you shouldn’t be too quick to turn bearish on crude oil.
The Strait of Hormuz accounts for about 20% of global oil transport. As long as there isn’t genuine stability restored here, there will always be a layer of war premium embedded in oil prices.
So the most troublesome part for crude oil right now is that news can move the price in a single direction day by day.
If negotiations make progress, it falls. If military conflict escalates, it jumps up immediately.
After crude oil manages to stand back above $90, we have to keep a close watch again on the Middle East line.
$CL $BTC