Oil markets showed signs of stabilizing as price swings narrowed, even though crude continued to trade at elevated levels. According to analysts at Deutsche Bank, Brent crude remained above the $100 mark, but daily fluctuations have started to calm.
Prices had recently been pushed higher due to geopolitical tensions and concerns over supply disruptions, including conflict-driven risks and Iranian activity. However, sentiment improved after reports of a potential agreement between Iraq and Turkey to resume oil exports through Turkish territory. This route would bypass the Strait of Hormuz, easing fears around supply bottlenecks.
Despite Brent crude rising 3.20% to close at $103.42 per barrel—marking its fourth straight session above $100—broader markets appeared less reactive. Analysts noted a slight disconnect, as equity markets strengthened and bond yields declined during the same period.
Market confidence improved further as oil prices slipped slightly following the Iraq–Turkey export developments. The softer movement in oil helped support a broader relief rally across financial markets.
Notably, trading activity has become less volatile. For the first time since March 5, Brent crude traded within a daily range of less than 5%, indicating a shift toward more stable conditions.
At the same time, investors continue to expect oil prices to remain elevated in the near term. This outlook is reflected in the futures market, where six-month Brent contracts climbed 3.26% to $86.12 per barrel.
