Oil: Volatility eases as supply headlines shift – Deutsche Bank

Deutsche Bank analysts highlight that Brent Oil remains above $100 but daily trading ranges have narrowed, signalling some easing in volatility. Prices were supported by conflict-related supply risks and Iranian strikes, but eased on news of an Iraq–Turkey export deal bypassing the Strait of Hormuz. Markets are also pricing a longer period of higher Oil via six‑month Brent futures.

Brent holds high but range narrows

"There is also a bit more calm in markets at the moment and a small hint that there is a decoupling from the price of oil as the last 24 hours have seen more positive risk markets and lower yields in spite of Brent crude (+3.20%) closing above $100/bbl for a fourth consecutive session, at $103.42/bbl."

"Optimism has been boosted a bit more this morning as oil is back down a couple of percent seemingly on an Iraq deal with Turkey to resume oil exports through their territory and thus not requiring the Strait of Hormuz."

"The broader relief rally was partly driven by more moderate moves in oil prices than we’d seen of late."

"In fact, it was the first day since March 5 that Brent traded within a range of less than 5%."

"That came as investors also priced in a longer period of higher oil prices, with 6-month Brent futures (+3.26%) rising to $86.12/bbl."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)