Apr 4, 2024 - Energy & Environment

Brent boosted by geopolitics, jumps over $90

Brent crude oil futures
Source: Yahoo Finance; Chart: Deena Zaidi/Axios Visuals

Brent crude hit levels around $91 per barrel on Thursday, the highest since October 2023, with markets getting more anxious about increasing geopolitical risks.

Why it matters: After months of being hemmed in by fears of soft global demand, the benchmark added nearly $2 per barrel during the session, inching closer to the psychologically-charged $100 level.

What they're saying: JPMorgan's notes there's a possibility for Brent to reach $100 this year, if no actions are taken to offset the loss of Russian supply.

  • "At face value, and assuming no policy, supply or demand response, Russia's actions could ...reach mid-$90 by May, and close to $100 by September, keeping pressure on the U.S. administration in the run-up to elections," JPMorgan notes.
  • The U.S. Department of Energy on Wednesday said that it will not be awarding oil supply contracts for refilling the Strategic Petroleum Reserve in August and September due to high prices.

The big picture: Growing geopolitical tensions have only acted as a catalyst for market fluctuations.

And it's not just crude on the rise.

  • Considered to be a safe haven for investors, gold is also touching an all-time high, reaching $2,307.6 a troy ounce on Thursday, signaling that jittery investors are looking for safety, especially as stocks buckle.

What we're watching: How commodities continue to react with global risks, solid demand and production cuts in a geopolitical chess match where every move counts.

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