Oil: Price swings ease as conflict risk reassessed – Deutsche Bank

💡 DMK Insight

Brent Oil’s recent stabilization around $100 is a critical moment for traders to assess. With conflict-driven spikes now subsiding, the market’s focus shifts to supply dynamics, particularly the potential for resumed flows through the Strait of Hormuz. If these flows indeed resume, we could see a bearish sentiment take hold, pushing prices lower. Traders should keep an eye on key technical levels; a sustained break below $100 could trigger further selling pressure. Conversely, if geopolitical tensions flare up again, we might see a quick rebound, so it’s essential to monitor news from the region closely. Here’s the thing: while many are optimistic about a return to normalcy, history shows that oil markets can react unpredictably to geopolitical events. So, don’t get too comfortable. Watch for volatility indicators and any shifts in OPEC’s stance, as these could signal larger moves in the coming weeks.