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A barrel of Brent reaches US$80 on Monday, driven by geopolitics. Chinese data drives demand engine.
The oil market recorded significant gains in today's session, with Brent crude surpassing the US$80 mark after a ten-day streak. The commodity's appreciation is, in part, due to geopolitical conflicts in the Middle East and Russia, which increase the risks of disruption to the global oil supply.
Geopolitical tension increases and its impacts on the Oil market
The escalation of these tensions is contributing to fears that transportation and production of Oil in region may be significantly affected. Volatility in crude oil prices, commodity essential, is a constant concern for investors, who closely follow the news about the Oil Barrel, especially the movements of Brent and WTI.
Attacks and suspensions of operations at oil installations
Another point of alert was the drone attack attributed to Ucrania to a gas terminal of Novatek in Russia this weekend, which forced the Kremlin to suspend some operations in installation, generating additional instability in the Oil market.
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Even in the face of these turbulences, the vice admiral of the oil market, Smyllei Curcio, from StoneX, observes that signs of a slowdown in China, important demand engine, limit the upward momentum. Furthermore, he highlighted that the People's Bank of China has maintained Interest unchanged in the decision on Sunday, when 'the market expected a cut'. 'You Chinese data they are making the market cautious', pointed out Curcio, emphasizing the importance of information coming from China in the context of the Oil market.
Fundamentals and strategies for the Oil market
Despite the uncertainties, Smyllei Curcio considers that most of the fundamentals are bullish. 'In other words, it is necessary to think about upside participation and upside protection strategies', he recommended, highlighting the importance of solid strategies in the face of risks present in the Oil market.
With this, it is clear that geopolitical issues and recent events in the region have a significant impact on the oil market, influencing the strategies and decisions of investors, who closely monitor oil movements. Brent Barrel and WTI, while evaluating the risks and opportunities present in this complex and dynamic scenario.
Source: CNN Brazil
