Oil is pulling back, but the danger hasn’t gone away.
U.S. crude futures are down around 2% near $101 a barrel, while Brent is holding around $114 after recently reaching its highest level in nearly six months.
The big issue is still the Middle East. Houthi attacks on Saudi Arabia are keeping traders worried about possible disruptions to oil supplies. At the same time, diplomatic efforts to ease U.S.-Iran tensions are giving the market some breathing room.
So even with today’s drop, oil remains extremely sensitive to every new headline.
One more major attack on energy infrastructure or shipping could quickly push prices higher again. For now, traders are watching the Middle East closely — because the next move in oil may depend more on geopolitics than supply and demand.
U.S. crude futures are down around 2% near $101 a barrel, while Brent is holding around $114 after recently reaching its highest level in nearly six months.
The big issue is still the Middle East. Houthi attacks on Saudi Arabia are keeping traders worried about possible disruptions to oil supplies. At the same time, diplomatic efforts to ease U.S.-Iran tensions are giving the market some breathing room.
So even with today’s drop, oil remains extremely sensitive to every new headline.
One more major attack on energy infrastructure or shipping could quickly push prices higher again. For now, traders are watching the Middle East closely — because the next move in oil may depend more on geopolitics than supply and demand.
