Global oil prices retreated to the $100 level on Monday after briefly surging to around $115 per barrel amid supply concerns and geopolitical tensions.
The market saw a rapid correction as investors engaged in profit-taking following a sharp increase triggered by disruptions in the Middle East and the closure of key maritime trade routes.
The market reaction to the 90-day emergency stocks announcement by European authorities provided temporary relief
As of 1400GMT on Monday, Brent futures price were at $100 per barrel, after it saw $114.28 earlier; West Texas Intermediate (WTI) feature price $98.1, down from $113.28.
Analysts noted that the initial spike to $115 reflected immediate fears over a 20% drop in global supply but the price stabilized at $100 after several countries announced the activation of strategic petroleum reserves.
The current $100 price point represents a critical threshold for global inflation with many economists cautioning that a sustained stay above this level could lead to stagflation in major economies.
By Gokhan Ergocun
Anadolu Agency
energy@aa.com.tr