Daily Oil Fundamentals
Geopolitical Circle
17 Jun 2025Geopolitical Circle
The reaction to unexpected geopolitical developments in the proximity of oil-producing regions, such as the current Israeli assault on Iran, follows a similar pattern. When the headline hits the screens man and machine (traders and algorithms) get rid of risky positions and the adventurous ones start building up length. Phase one was embodied in Friday’s jump to $78.50/bbl in Brent. As details start to filter through, the actual situation is assessed, which can be labelled phase two. Oil supply and production were ostensibly spared in the initial strikes, and oil fell from the summit but still posted considerable daily gains because of the uncertainty the weekend carried.