#BrentReturnsTo100

Brent crude jumped past the $100 per barrel mark and was at $100.69 at market close. WTI crude futures also closed 6.2% higher at $92.19. It was the first time Brent crude broke the $100 milestone in two months, amid increasing worries about global oil supplies.

Global energy markets gained after reporting on Saudi oil tankers hit in the Red Sea, which forced the kingdom to say one vessel was on fire, while pressure continued building on both sides of one of the globe’s critical oil- shipping crossroads – both the Strait of Hormuz and Bab el-Mandeb - where millions of barrels of oil stream through daily.

Brent’s prompt physical oil breached the $105 per barrel level and market players began pricing in potential increases in inflation, as U.S. 10-year yield pushed past 4.7% and the Nasdaq dropped 2.3% on growing apprehension over future financial conditions and possible slower economic growth on the back of higher energy costs.

Future moves in crude now loom into focus for central bankers as persistent upward inflation pressure is expected to contribute to higher rates until at least the next interest-rate-setting policy meetings in Europe and the U.S. With the current upward movement in the energy space, analysts see an increasingly larger probability of additional tightening actions should these prices remain at the elevated levels. Goldman Sachs analysts see Brent targeting $120/bbl in the 4th Quarter if those disruptions continue throughout the period.

This ultimately relies upon evolving geopolitics and global demand from this emerging threat to commodity streams which impacts global inflationary, equity market sentiment, alternative investments and the crypto space as well.

Do you believe Brent oil will continue its trek towards $120, or do you see the geopolitic situation defuse prior to this move?

‍#OilMarket #GlobalEconomy #GateSquare