By Han Tan, Market Analyst, ForexTime
2020 kicked off with a spike to Oil prices, as a sudden escalation in geopolitical concerns permeated market sentiment following the US airstrike in Iraq. WTI crude briefly breached $63.80/bbl as it claimed a year-to-date gain of 3.26%, while Brent broke above $69.00/bbl before moderating its way to a 3.94% gain so far in 2020.
The heightened tensions in the region should keep Oil prices elevated over the near-term, as market participants brace for any further moves by either Iran or the US that could ramp up supply-side concerns. As such fears gather a bigger crowd, that could easily send Brent well above $70/bbl and WTI past $65/bbl.
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