Brent Crude Hits $90
Brent crude soared above $90 per barrel, a milestone not seen since October, fueled by mounting tensions in the volatile Middle East region.
Geopolitical Risks Drive Prices
The surge in crude prices is attributed to heightened geopolitical risks, with reports indicating that Israeli embassies are on high alert amidst escalating threats of an attack from Iran.
Global Concerns and Market Response
Concerns over regional conflicts have contributed to a surge in oil prices, with Brent crude seeing its highest settlement since October 20 in response to the escalating tensions in the Middle East.
US Stance and Energy Markets
The recent developments have resulted in a strong public rebuke from the US towards Israel, with President Biden urging for immediate actions to address safety concerns. In the energy markets, both Nymex crude and Brent crude experienced notable gains, with Brent crude reaching $90.65 per barrel.
Market Dynamics and Forecast
Market analysts predict that Brent crude may reach $93-$95 on the back of OPEC+ production cuts and uncertainties surrounding Iranian oil supply. However, strong resistance at these levels could prompt profit-taking from producers and speculators.
Long-Term Outlook
Despite the current bullish trend, Citigroup remains bearish on oil prices for 2025, citing a projected slowdown in demand growth due to factors like stalled jet fuel recovery post-COVID and the increasing adoption of electric vehicles.
