Crude Oil Rally Hits Roadblock as Price Momentum Fades

Crude oil prices have reached an all-time high above $100 due to escalating Middle East supply risks, including disruptions through the Strait of Hormuz and attacks on Saudi energy infrastructure.

The rally has since lost momentum as much of the immediate risk has been priced in, but markets remain tight, so another supply shock could quickly revive the rally.

Despite this, the failure to extend above resistance suggests the near-term risk/reward is becoming less favourable for oil bulls. However, geopolitics sent prices this high and could just as easily send them above $108 if things escalate once more.