Oil prices rose sharply in the first session of the week as new developments in the Middle East increased concerns about the risk of disruption to global energy supplies.
Brent oil at one point increased by 5.4%, exceeding the 98 USD/barrel mark. However, oil prices are still lower than the 100 USD/barrel threshold and are still quite far from the nearly 130 USD/barrel peak recorded during the most intense escalation of tensions before that.
The increase in oil prices reflects the market's cautious sentiment in the face of the risk that important energy transport routes continue to be affected, especially the Hormuz Strait area - the transit point for a large amount of crude oil, fuel and liquefied natural gas of the world.
According to experts, although the market has avoided the most serious supply disruption scenario, the risks to energy transportation activities have not completely disappeared.
Mr. Ole Hansen - Head of Commodity Strategy at Saxo Bank - said that the prospect of fully restoring energy flow is still challenging.
Despite the positive signals that have appeared in recent times, the complete restoration of energy transportation from the Middle East has not made much progress. This is strengthening expectations that oil prices may remain at a high level for a longer time," Mr. Ole said.
In addition to the oil market, natural gas prices in Europe also increased sharply as investors worried that global supply of liquefied natural gas (LNG) could be affected as many countries are entering the fuel storage phase.
Experts believe that even in the most favorable scenario, bringing energy transportation and exploitation back to normal will also take more time.
Many energy infrastructure items need to be restored, while some oil fields that have been temporarily suspended may take months to resume operation.
In the short term, the risk of tight supply continues to be a factor supporting oil prices. This also increases global inflationary pressure, affecting the monetary policy expectations of central banks and spreading to many other commodity markets, including gold and industrial metals.
