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West Texas Intermediate (WTI) crude oil prices surged above $100 per barrel on Monday, reaching a 13.7% intraday gain after briefly touching $110 during the Asian session—the highest level since mid-2022. The rally was driven by escalating geopolitical tensions in the Middle East, particularly the Israel-Hamas conflict, which raised fears of supply disruptions. However, prices retreated slightly later in the session as markets digested news of potential emergency oil reserve releases by major consuming nations to stabilize prices. The sharp volatility highlights the sensitivity of energy markets to geopolitical risks and policy interventions. Traders are closely monitoring OPEC+ production decisions and U.S. Federal Reserve policy, as both could influence the trajectory of oil prices. The move also underscores the fragility of global energy security amid ongoing conflicts and the delicate balance between supply constraints and demand resilience. For investors, the current environment presents both opportunities and risks. While sustained geopolitical tensions could push prices higher, coordinated reserve releases or increased OPEC+ output might cap gains. Key watchpoints include developments in the Middle East conflict, U.S. crude inventory data, and statements from major oil producers. The $100 psychological level remains a critical support/resistance threshold for technical analysts.
