Brent Breaks Six-Day Winning Streak as Geopolitical Risk Eases

Brent crude oil prices have broken their six-day winning streak after a modest pullback. The decline comes as some geopolitical risk premium is removed from the market, according to Deutsche Bank analysts.

The bank notes that despite intraday volatility linked to Houthi and Iranian headlines, refined product markets remain tight. Brent is still significantly above pre-Iran war levels, with prices +20% higher than before the conflict.

The pullback in oil prices has contributed to a dovish momentum in the market, which has also been fueled by lower US PPI inflation print and expectations of no Fed rate hike. This has sent the S&P 500 to fresh highs, with a +0.65% gain.