Geopolitical Tensions and Oil Market Dynamics

This chapter examines the influence of recent geopolitical tensions on the WTI crude oil market, particularly following retaliatory actions by Iran. It highlights the distinction between temporary price hikes due to short covering and the overall resilience of oil supply, addressing future price implications amid a potential decline in U.S. shale output. The discussion intertwines oil market forecasts with broader economic factors and ongoing conflicts, especially regarding key shipping routes and their impact on prices.