Brent oil prices were broadly flat in early Tuesday trading, remaining just above $100 per barrel, as traders continue to balance improving supply conditions against persistent geopolitical risks in the Middle East. Crude exports from the Gulf have recovered significantly in recent weeks, as producers adapt to disruptions around the Strait of Hormuz through alternative routes and logistical arrangements, easing some of the concerns over global supply. Saudi Arabia has also reduced the selling price of its flagship crude to Asian customers, while the decision by G7 countries to release oil and diesel from emergency reserves is providing additional reassurance to the market. However, geopolitical risks remain elevated, with continued attacks on shipping around the Strait of Hormuz and renewed Houthi attacks against Saudi targets maintaining a significant risk premium in oil prices. Against this backdrop, Brent is likely to remain volatile, with traders continuing to monitor developments in the US-Iran conflict, regional shipping activity and any further signs of improvement in Middle Eastern oil flows.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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