Brent crude above $89 reflects rising supply concerns

Yesterday oil prices rose to new 2024 highs and the price of Brent made a clear break above the noted top line trend resistance that had been capping further gains in recent trading. The move above $88 per barrel later extended to above $89. Brent for June delivery later settled $1.50 higher on the NYMEX exchange, at $88.92. It has traded to above $89.30 earlier today and the clear driver for all this is not about demand, it is all about supply concerns. Forget what demand outlook gets touted across the wires because that is disingenuous. What is really concerning the oil markets right now is all about potential supply disruption concerns out of the Middle East. That is not the case yet, but the oil markets are fretting about the outlook, given the recent developments there over the past 48 hours. All the latest news from that region is not positive for the outlook and that is what is driving oil prices higher right now. Brent crude for June delivery is currently trading at $89.09