West Texas Intermediate crude futures on NYMEX surged over three percent to approximately $88.60 per barrel during Thursday’s European session, marking the fifth consecutive day of gains and pushing prices toward the $90 threshold. The extended rally comes as escalating geopolitical tensions in the Middle East raise serious concerns about potential disruptions to global energy supplies from the region.
The sustained upward momentum reflects growing trader anxiety over supply chain vulnerabilities as Middle Eastern conflicts threaten to impact oil production and transportation routes. Energy markets are now pricing in heightened geopolitical risk premiums, with WTI approaching psychologically significant levels not seen in recent months. The rally affects global fuel costs, inflation expectations, and currency markets, particularly the Canadian dollar and Norwegian krone which track oil prices closely.
FXnCO Insight
Traders should monitor $90 as a critical resistance level for WTI while hedging against further energy-driven inflation that could influence central bank policy decisions and pressure rate-sensitive assets.
Source: FXStreet