Oil prices surged after a surprise drone attack by Ukraine on Russian air-force bases, prompting some analysts to dub the incident “Russia’s Pearl Harbor.” However, despite this shock, OPEC+ announced an increase in oil production for a third consecutive month. The unexpected rally in crude prices may be short-lived, according to some experts.
The market was initially expected to see lower oil prices following the announcement of increased production from OPEC+, but Ukraine’s attack changed the dynamics. The drone strikes damaged or destroyed Russian bombers used for missile attacks and potential nuclear strikes, as reported by the Wall Street Journal. This sudden development led to a surge in oil prices, sparking concerns about the duration of this upward trend.
Analysts are now warning that the rally may not last, given the ongoing conflict between Russia and Ukraine. As tensions escalate, investors are advised to exercise caution and reassess their investment strategies accordingly.
Source: https://www.marketwatch.com/story/why-oils-rally-after-russias-pearl-harbor-moment-may-be-short-lived-851ff06b