Crude Oil Climbs as U.S. Iran Strikes Restart Supply Fear
Crude oil prices are rallying as renewed U.S. and Iran strikes push supply risk back to the front of the market.
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Crude oil prices are rallying as renewed U.S. and Iran strikes push supply risk back to the front of the market. Fawad Razaqzada, StoneX Media Market Analyst, breaks down what is driving crude higher, why the United States and Venezuela agreement changes little in the near term, and where the pressure lands next. The Strait of Hormuz has returned to the center of oil pricing, and markets are valuing barrels that can reach consumers now rather than supply that may arrive years from now. Venezuela produces heavy sour crude, which is more expensive and technically harder to produce and refine than much of the oil produced in the United States, so any meaningful increase in output is a multi-year project. U.S. strategic oil reserves sitting at their lowest levels in about 44 years add another layer of demand beneath the market, while the crude rally is already leaking into equities, bond yields and gold.
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