Spot oil prices are approximately $50 higher than futures prices, as the Middle East conflict is triggering a severe global oil supply crisis.

Although the extreme volatility in crude oil futures prices has eased somewhat in recent days, the market still reacted strongly early Monday to reports of the breakdown of U.S.-Iran negotiations and the U.S. beginning to blockade the Strait of Hormuz, with prices surging by 8% at one point. Traders continue to respond to how this most severe disruption in energy market history may evolve. Amid persistently high uncertainty, participants in the oil market are constantly placing bets based on various signals while attempting to forecast future price movements. Analysts believe that the most intense phase of volatility may have passed, as investors and speculators seem to be gradually exhausting their reactions to the ever-changing policies of the Trump administration.

FX678 FinanceApr 15 14:19