【Oil Price Trends】Oil Prices Rebound During Asian Trading Session, Brent Crude Continues Above $100 - Analyst: Oil Prices Show "Pulsatile" Volatility, Unlikely to Remain Elevated Long-term as Supply Recovers

Iran’s war enters its third week, and international oil prices remain high. The International Energy Agency (IEA) stated that additional releases from oil reserves could be made if necessary. Oil prices retreated overnight but rebounded during Asian trading hours, with New York crude futures rising 2% early on to around $94, while Brent crude remains at about $102. Analysts note that oil prices fluctuate in a “pulse-like” manner, allowing investors to seize short-term trading opportunities.

Earlier, the IEA committed to releasing 400 million barrels of oil reserves into the market. Executive Director Birol said that if needed in the future, countries can release more oil from strategic reserves.

Affected by the war and oil supply news, oil prices fluctuate at high levels. Some analysts suggest investors can take advantage of the situation to buy and sell. “With oil prices so high, you might consider mainly short positions. During the Russia-Ukraine conflict, prices peaked around $132. When the war eases, prices quickly dropped to $90 or $80. I think there are some support levels now, so everyone should keep an eye on that,” they said. However, they added that there will be many news events related to the war, and investors should stay cautious. “If oil tankers are attacked or aircraft carriers are targeted, prices could rise again. When opening short positions, be careful.”

In the medium to long term, they believe oil prices will fall back. “The daily supply gap is roughly 10 million barrels, but Iran continues to supply oil to China for money, and they are also using underground factories to develop drones to counter the US.” Therefore, they think that with supply gradually recovering, oil prices won’t stay high for long.