Brent: Risk premium drives triple‑digit prices – Societe Generale

💡 DMK Insight

Brent crude’s rise above $100/bbl is a game changer for traders right now. With 17 mb/d of supply stranded and OPEC+ spare capacity limited, the implications for energy markets are significant. This spike isn’t just a blip; it reflects deepening geopolitical tensions and supply chain disruptions that could persist. Traders should be on high alert for volatility, especially if prices push through key resistance levels. Watch for potential reactions in related markets like natural gas and even equities tied to energy stocks. If Brent holds above $100, we could see a cascading effect across commodities, impacting inflation and central bank policies. But here’s the flip side: if diplomatic efforts ease tensions, we might see a rapid correction. Keep an eye on the daily charts for signs of reversal or continuation patterns. The next few weeks will be crucial, so monitor the Strait of Hormuz developments closely and adjust your positions accordingly.