Brent Weakens in Asia, Market Awaits Supply and Policy Certainty
Brent oil prices fell to around US$98 per barrel at 11:00 a.m. Western Indonesian Time (based on TradingView), after previously holding above US$100. This correction reflects the market beginning to test whether the risk premium from the Iran war remains substantial enough to keep prices high, or whether it is beginning to "deflate" after the sharp rally in recent sessions.
The decline is also in line with a common pattern after major spikes: some market participants tend to take profits when prices reach psychological levels, while investors await confirmation of whether physical and logistical supply disruptions are truly worsening or stabilizing. In recent days, Brent briefly closed above US$100 following attacks on energy infrastructure and concerns about shipping routes.
On the policy front, the market continues to weigh the international response regarding strategic reserves. A large-scale release of reserves could provide a temporary supply cushion, but investors still believe that oil prices will remain highly headline-driven as long as risks to key energy routes remain unabated.
Immediate impact on the market
Inflation & interest rates: Brent remains at a high level (despite the correction) and concerns about energy inflation remain, so the market tends to be more cautious in pricing in interest rate cuts. (CP)
Source: Newsmaker.id
