Cadi Poon
03-11
Price Volatility & Reversal: Crude prices retreated from a peak of $119.50 to $88.17 (WTI) and $89.79 (Brent) following de-escalation signals and the potential release of reserves.

Unprecedented Strategic Release: The G7 and IEA are coordinating a massive deployment of 1.8 billion barrels in global reserves to offset the 16 million bpd supply gap triggered by the blockade.

Chokepoint Constraints: While reserves offer short-term relief, the restoration of the Strait of Hormuz, which handles 20% of global oil, remains the critical factor for long-term market stability.

Oil Rebounds: Can It Stabilize Within Ceasefire Window?
USO edged up 1.91% to $126.96, staging a technical recovery after yesterday's near-10% plunge as the geopolitical risk premium tied to the U.S.-Iran ceasefire window nears exhaustion. OPEC+ production increase expectations and slowing global demand growth continue to weigh on the medium-term outlook, with $130 as near-term resistance. Outcome would be agreement extension? Or breakdown-driven rebound?
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