Oil Remains Elevated as Supply Risks Deepen

Escalating geopolitical tensions and growing strain across key export routes continue to underpin oil prices, keeping the market focused on supply security and broader inflation risks.
VT Markets | 156 days ago

Oil prices remained firmly elevated at the start of the week, with WTI holding at $100.98 and Brent advancing 2.6% to $115.45 per barrel. The move reflects growing concern over supply security, with conflict in the Middle East raising the risk of more severe and sustained disruption across global energy flows.

That concern has become more pronounced with the Strait of Hormuz effectively closed, forcing producers to depend more heavily on alternative export infrastructure. In that context, Saudi Arabia’s east-west pipeline has taken on greater strategic importance, with capacity to transport up to 6 million barrels per day to the Red Sea. While this offers an important alternative route, it also brings fresh uncertainty, as any threat to that infrastructure could quickly tighten the market further.

The wider geopolitical backdrop continues to reinforce that risk premium. Reports suggesting the United States may be considering an operation involving nearly 1,000 pounds of uranium in Iran have added to concerns over further escalation, while attacks linked to regional actors have heightened fears around the security of shipping lanes and energy assets. As a result, oil markets are no longer pricing only immediate disruption, but also the possibility of a more sustained period of instability.

From a technical standpoint, crude continues to trade within a strong upward structure, even as the latest rally begins to consolidate. Price has stabilised near the psychological $100 level after advancing towards a recent high of 119.40. Immediate support is seen at 100.00, followed by 95.00 and 90.00, while resistance stands at 102.00, 105.00 and 110.00. For now, the current pause appears more consistent with consolidation than reversal, although elevated levels continue to leave the market sensitive to sharp swings in sentiment.

Explore how geopolitical risk, supply disruption and inflation pressures are shaping the outlook for oil and the wider energy market in this article.

VT Markets
Type: STP, ECN
Regulation: ASIC (Australia), FSCA (South Africa), FSC (Mauritius)
read more
The US Equities Brace for Further Pressure as Short Positioning Reaches Extremes

The US Equities Brace for Further Pressure as Short Positioning Reaches Extremes

The US equities are flashing increasingly defensive signals. Small caps are leading the sell-off, with the Russell 2000 underperforming and put/call positioning turning extremely bearish. Meanwhile, net shorts in Nasdaq 100 futures have surged to multi-year highs, creating downside risk — but also the potential for a powerful short squeeze.
Headway | 1h 25min ago
Brent is heading towards $100 a barrel

Brent is heading towards $100 a barrel

Brent is rallying on Middle East escalation and Strait of Hormuz supply fears, pushing the dollar to two-week highs as rising oil prices fuel inflation expectations and lift the probability of a Fed rate hike in September to 68%. Strong US manufacturing PMI and hawkish FOMC comments are adding further fuel to the Treasury yield rally.
FxPro | 3h 59min ago
Further Middle East hostilities fuel dollar’s engines

Further Middle East hostilities fuel dollar’s engines

Dollar rallies as US-Iran strikes lift oil and bolster Fed hike bets - Yen rebounds as BoJ Gov. Ueda appears ready to raise interest rates - Kiwi falls as RBNZ hikes, but appears less hawkish than expected - Wall Street and gold tumble amid renewed inflation fears
XM Group | 6h 23min ago
Global Bond Selloff, Eyes on Central Banks & US ADP

Global Bond Selloff, Eyes on Central Banks & US ADP

The Reserve Bank of New Zealand and the Bank of Canada announce rate decisions in succession. This morning, the RBNZ raised rates by 25 basis points as expected; the BoC continues to balance slowing domestic growth against inflation pressures, with rates expected to remain unchanged. US ADP employment data (forecast 48K, previous 44K) will serve as a preview for Friday’s official Nonfarm Payrolls.
ATFX | 7h 52min ago