The German Institute for Economic Research (DIW) has stated that oil supplies for Germany and the wider European region remain stable, despite a sharp spike in crude prices triggered by recent escalations in the Iran conflict.
An economist at the institute emphasized that current logistics and inventory levels are sufficient to meet demand, separating the physical reality of supply from the financial market's risk pricing.
Brent crude futures have remained volatile in the session, reflecting the ongoing tension between fundamental supply security and geopolitical uncertainty.
While the DIW assessment suggests no immediate physical shortage, the risk premium embedded in energy prices continues to weigh on market sentiment.
Traders are balancing the reassurance of stable European logistics against the unpredictable nature of the Middle East conflict.
This development comes as European economies show signs of resilience, with inflation pressures easing and manufacturing activity rebounding in recent data.