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Glut Forecasts
Analysts predict an oversupplied oil market for 2026 due to rising non-OPEC production.
Supply Shocks
Unexpected disruptions and sanctions begin tightening the physical crude market.
Iran Risk Hedging
Traders rush to buy protection against potential US military escalation in Iran.
Crude oil markets are experiencing their most volatile and bullish start to a year since 2022, driven by supply shocks and tightening sanctions. Traders are now aggressively purchasing insurance against the risk of direct US military action against Iran, shifting the market narrative from a predicted surplus to an immediate deficit concern.
U.S. stock futures point to a higher open driven by a rebound in technology shares, while Treasury yields remain stable. Investors are navigating a complex landscape of upcoming inflation data, potential trade policy shifts, and lingering geopolitical tensions in the Middle East.