Oil markets are whipsawing on shifting geopolitical headlines. We examine the structural factors behind the recent volatility and why supply chain risks remain relevant.

The conflict in the Gulf has introduced significant volatility into global energy markets. Prices are reacting sharply to the news cycle, oscillating between fears of supply disruption and hopes for a resolution.

When crude oil breached the psychological US$100-per-barrel mark earlier in the week, it served as a stress test for market sentiment. However, the speed of the subsequent pullback reinforces our view that prices are currently being driven by a geopolitical risk premium and insurance bottlenecks, rather than a structural lack of physical supply.

Read | Views from the Floor

Man Group

London-based Man Group is a technology-empowered active investor across equity, credit, commodities and currency markets, with a firm focus on delivering performance and client portfolio solutions.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.