"Geopolitical Tensions Propel Oil Prices Above $90, Reigniting Inflation Concerns"

The OPEC+ alliance is facing the risk of a repeat of last year's oil market boom and bust as Brent crude prices surged above $90 a barrel, with analysts warning of a potential increase to $100. Despite robust fuel demand and geopolitical tensions in the Middle East, Saudi Arabia and its partners have signaled their intent to continue squeezing supplies. The situation mirrors the market narrative of 2023, when high oil prices led to fears of demand destruction and a flood of additional supplies, ultimately causing a sharp drop in Brent futures. The outcome of the next OPEC+ meeting in early June will be crucial in determining whether history will repeat itself.