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OCBC analysts predict oil prices will stay above $100 per barrel due to limited progress in de-escalating tensions with Iran and ongoing supply constraints. Geopolitical risks, including potential disruptions in the Strait of Hormuz and OPEC+ production discipline, remain key drivers. The bank highlights that Iran’s nuclear program and U.S.-Iran relations continue to weigh on market sentiment, while global demand recovery supports price stability. For traders, the sustained high prices present both opportunities and risks. Energy sector stocks and commodities-linked ETFs could benefit, but volatility from geopolitical shocks remains a concern. Hedge funds and institutional investors may adjust exposure based on OPEC+ policy shifts or unexpected supply disruptions. MENA investors should monitor regional energy policies and currency fluctuations. Gulf Cooperation Council (GCC) economies, heavily reliant on oil exports, may face inflationary pressures. Key watchpoints include OPEC+ meetings, U.S. sanctions on Iran, and geopolitical developments in the Middle East.
