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DBS Group Research analyst Eugene Leow highlights that WTI crude oil prices have surged above $90 per barrel despite planned strategic reserve releases and expectations of a short-lived conflict. The price resilience is attributed to ongoing supply risks driven by geopolitical tensions, which outweigh temporary market interventions. This development underscores the sensitivity of energy markets to regional instability, even amid efforts to stabilize prices through reserve management. For traders, the situation signals a potential shift in market dynamics where supply-side disruptions could dominate over demand-side factors. Energy investors are closely monitoring how prolonged conflicts might impact production flows and OPEC+ policy adjustments. The interplay between strategic reserve utilization and geopolitical risks will likely shape near-term price volatility. Looking ahead, the key focus will be on the duration of the conflict and its ripple effects on global supply chains. Central banks and energy ministries in Gulf Cooperation Council (GCC) nations may reassess fiscal policies tied to oil revenues. Traders should also watch for technical resistance levels around $95 as a critical threshold for further bullish momentum.
