Oil may get another run as liquid gold.
Crude (CL=F) futures surged 9% last week — its biggest weekly gain since March 2023 — driven by escalating tensions in the Middle East.
Israel’s vow to retaliate against Iran’s missile attack has prompted more traders to bet on $100 oil, pushing bullish Brent crude oil wagers to a 5-week high.
I had a chance to speak with Rystad Energy’s Claudio Galimberti, who told me traders are “clearly factoring in the risk of a big supply disruption“ as tensions in the Middle East rise to “one of the highest levels in four decades.”
Iran is a major player in the global oil market, producing more than three million barrels of oil a day, so the growing risk of a supply disruption could be a “big tailwind to prices” in the near term, according to Blue Line Futures’ Bill Baruch.
“That’s going to push crude oil prices significantly higher….
