News

```htmlGolden Ten Data reported on March 25 that International Energy Agency (IEA) Director Birol stated that he is prepared to further release oil reserves as global energy prices soar. Birol made these remarks in Tokyo after the Japanese Prime Minister asked the IEA to prepare for a second emergency release of reserves. Earlier this month, the IEA announced the release of 400 million barrels of oil, marking the largest oil release in the agency’s history. He said: “We still have 80% of our inventory. If necessary, we are ready to proceed.” However, he also warned that “the world is facing a severe threat to energy security.”```

```htmlGolden Ten Data reported on March 25 that the petrodollar system is supported by three core elements—the United States' demand for oil, oil being priced in dollars, and the security relationship between the Gulf region and Washington. All three aspects are currently facing pressure. First, the new position of the US as a net energy exporter means it no longer strictly depends on oil supplies from the Middle East. Second, the situation of oil pricing in dollars had already begun to deteriorate before the outbreak of war. Many countries have been striving for years to price energy trade in their own currencies, and to some extent have made progress, albeit limited. The third point—and also the most serious—is that this war has brought uncertainty to the US security umbrella policy and the Gulf region's trust in this policy. According to a report released by Deutsche Bank on Tuesday about the current state of the petrodollar system, strategist Malika Sahdev believes that the petrodollar system was already under pressure before the war broke out: nowadays, most Middle Eastern oil is flowing to Asia; oil from sanctioned Russia and Iran is traded in non-dollar currencies; and Saudi Arabia not only has been localizing its defense industry, but is also trying to adopt non-dollar currencies for oil payments.```

Golden Ten Data, March 25th | Kyle Craig, JPMorgan’s global market strategist based in Melbourne, said, “Currently, the market is fluctuating due to news events from the Middle East, so the overall tone is optimistic. However, the current challenge lies in... there are still many unknowns regarding the future direction of the situation and whether a substantial ceasefire agreement can be reached.” Mark Whelan, Head of Investments at Singapore’s Lucerne Asset Management, commented, “At present, the market seems to be reacting rather than predicting. Until the positions of the US and Iran become clearer, I think price movements will remain fragile. People are reluctant to follow volatility entirely driven by headline news, which can quickly reverse.”