Oil Turns Higher on Supply Disruption Fears, With WTI Above $102
Summary
- Oil futures turned higher on concerns over supply disruptions, with WTI futures rising 1.02%% to $102.05 a barrel.
- Recent US-Iran tensions and Strait of Hormuz strains are fueling supply concerns and directly affecting international oil prices.
- Rising oil prices are reviving inflation concerns and weighing on investor sentiment in the digital-asset market, including Bitcoin.
Forecast Trend Report by Period
Oil prices turned higher as concerns over supply disruptions outweighed worries about an economic slowdown. Middle East risks are again lifting crude even as growth fears persist.
Walter Bloomberg reported on May 18 that oil futures reversed course and moved higher in volatile trading as supply concerns offset anxiety over the economic outlook.
According to Investing.com, West Texas Intermediate futures rose 1.02% from a day earlier to $102.05 a barrel.
Traders are focused on recent tensions between the US and Iran, as well as continued strains around the Strait of Hormuz, which are fueling concerns about crude supply. The waterway is a critical route for global oil shipments, so the possibility of a blockade or restrictions on passage has a direct effect on international oil prices.
Concerns about an economic slowdown, however, remain in place. Uncertainty over US interest rates and the prospect of weaker global growth are weighing on the demand outlook for crude and adding to price volatility.
The recent increase in geopolitical risks in the Middle East is also affecting risk assets, including Bitcoin. Higher oil prices are reviving inflation concerns and weighing on sentiment in the digital-asset market.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
