The War Premium Returns

Just days after tensions seemed to cool, the deployment of US warships has brought the 'war premium' roaring back. Traders are hedging against any potential closure of the Strait of Hormuz, which would override all oversupply concerns.

Kazakhstan Outage

Adding to the bullish pressure is a continued outage at Kazakhstan's giant Tengiz oilfield. This physical supply disruption is tightening the light-sweet crude market just as geopolitical risks escalate.