#BrentReturnsTo100

Brent crude surfs a geopolitical wave and crosses the $100 barrier (gate-square) Oil prices jumped on Monday as tensions flared in the Middle East and risks at some of the most critical global transit routes emerged. Brent crude future rose above $100 for first time in two months, rising in post-trade terms, to $100.69 a barrel. West Texas Intermediate was up 6.2% at $92.19.

It has surged after an assault targeting two Saudi oil tankers in Red Sea last night reported by rebel group and was confirmed to have caused a fire onboard the tanker.

At the same time shipping risks both Strait of Hormuz as well as around Bab el Mandeb also seemed to be on the rise - two most important routes globally for the oil transportation – disruption to any of them might squeeze supply levels tighter. Physical oil prices of spot barrel Brent crude have risen above $105. Analysts continue to watch how far oil price can rise. Goldman Sachs predicts Brent crude to move towards $120 barrel in fourth quarter if such global supply disruptions go on even to the 2027.

The sharp increase has come to light the inflation fear as the U.S. 10-year Treasury yield rose above 4.7 per cent on concerns that price gains for energy could keep consumer prices high.

The Nasdaq fell 2.3 per cent and the US yield soared to 4.7 per cent as inflation and the possibility of Federal Reserve hike in upcoming week is at a approximately 25 percent risk with oil pushing it up the curve to be the highest its been since the summer. Higher oil price has ripple effects to across commodities, equities, currencies, and even to crypto markets these days as global jitters resurface making crude a key driver for investors to drive global sentiment towards it. Do you expect for the Brent crude to push higher all the way to $120, or geopolitical stabilization could let oil go down again $100?

‍#OilMarket #Energy #GateSquare