Brent crude prices rose in early European trading, climbing above $85 a barrel. After hitting a five-month low at the beginning of the month, the benchmark has since gained more than 20%. The rally reflects growing concern among oil traders over supplies from the Gulf region. With the US and Iran engaged in increasingly aggressive military exchanges, and maritime traffic through the Strait of Hormuz reduced to a trickle, fears are mounting that the conflict could return to an earlier stage when, in practical terms, a de facto blockade prevented around 20% of global oil production from reaching international markets. Against this backdrop, oil traders will remain focused on developments surrounding the conflict, increasing the likelihood of heightened price volatility.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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