Supply Disruptions Push Oil To $120: What Happens Next? Vandana Bharti Explains

Global energy markets have witnessed extreme volatility as crude oil prices surged to $120 per barrel, rising sharply from around $70 in just five to six trading sessions. Analysts say the rally was anticipated as options positioning in the NYMEX market had already indicated such levels. However, experts believe these elevated prices may not be sustainable in the long run because the surge is largely driven by supply disruptions rather than actual shortages. The moment there is any positive development or easing of geopolitical tensions, crude prices could quickly decline by $20–$30. In fact, prices already saw a sharp drop after G7 nations discussed releasing strategic reserves to stabilise markets. Still, with no clear signs of de-escalation, market indicators suggest crude could potentially test $130 per barrel in the near term.