Brent: Supply risks support prices – Danske Bank

FXStreet Insights Team FXStreet

Danske Bank’s Danske Research Team notes Brent crude trading near USD 97 as renewed US-Iran strikes around the Strait of Hormuz raise concerns over prolonged disruptions to Middle East energy flows. The bank highlights OPEC+’s decision to keep output policy unchanged and likely pause further increases in Q4, but stresses that actual supply control remains constrained by ongoing Iran-related disruptions.

Middle East risks keep Brent elevated

"In geopolitics, Brent crude is trading around USD 97/bbl this morning, extending last week's gains, as renewed US-Iran strikes on commercial shipping around the Strait of Hormuz raise concerns over prolonged disruptions to Middle East energy flows. In the Ukraine war, weekend talks by Witkoff and Kushner in Moscow and Kyiv sought to revive earlier peace proposals, but ended without a breakthrough."

"In commodities, OPEC+ kept oil output policy unchanged for October on Sunday."

"According to Reuters sources, the group is likely to pause further output increases in Q4 while it reviews 2027 quota baselines."

"More broadly, however, OPEC+'s ability to steer actual supply and prices remains limited as long as the Iran conflict continues to disrupt flows through the Strait of Hormuz."

"After an intraday low of USD 93 per bbl, the Brent oil futures contract has risen and currently trades around USD 97 per bbl, after the US and Iran exchanged attacks over the weekend."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY slides to test 154.00 on aggressive hawkish BoJ repricing

USD/JPY accelerates its decline and tests 154.00 in the European session on Monday as an aggressively hawkish BoJ repricing continues to drive the Japanese Yen higher. Meanwhile, the US Dollar faces headwinds from US debt worries and uncertainty about the Fed's policy outlook ahead of Friday's US CPI data release.

Gold recovers intraday losses to sub-$4,400 as USD slumps despite Fed rate hike bets

Gold shows some resilience below the $4,400 mark, and recovers intraday losses during the first half of the European session. Any meaningful upside, however, seems limited as traders might opt to wait on the sidelines ahead of the latest US inflation figures, due later this week.

Bittensor: TAO eyes $300 amid launch on Raydium, parody meme coin, ChatGPT-6 Astra release

Bittensor is trading in the green on Monday, continuing a steady upward trend over the last five days, with a 25% gain. Social chatter surrounding Bittensor is increasing amid a similarly named meme coin launched on Solana and the release of ChatGPT-6 Astra. The technical outlook for TAO is bullish as momentum strengthens and buyers target the $300 breakout.

Strong US jobs, Middle East tensions and key inflation data ahead

Good morning all, hope you enjoyed your weekend. Markets are starting the week after Friday’s stronger-than-expected US jobs report, which increased expectations that the Fed could raise rates at its September meeting. However, US markets are closed today for the Labor Day holiday, so liquidity should be lower and we may see slower price action.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.