S&P Global's Vice Chairman and energy expert Dan Yergin stated that, under the dual impact of escalating geopolitical tensions and China's stimulus measures, the energy market is becoming "schizophrenic".

Yergin said in an interview with CNBC on Tuesday that traders are on one hand focusing on signs of future demand in China, while also preparing for interruptions caused by ongoing geopolitical issues in the Middle East.

Yergin stated in the interview: "I think the energy market right now is really contradictory."

Yergin mentioned that the market's attention is two-fold, focusing on the potential hopeful stimulus measures from China on one side, and the rising geopolitical risks in the Middle East on the other.

Yergin said: "You will see oil prices fluctuate between these two."

On one hand is China, which has contributed half of the world's oil demand growth over the past twenty years.

He mentioned that some measures introduced after the announcement of stimulus measures last month have helped improve China's energy demand outlook.

Yejin said, 'Regarding the stimulus measures in China, there seems to be increasing confidence that they will actually have a significant impact on economic activity and demand.'

Recent measures implemented by our country include injecting up to 800 billion yuan (equivalent to 112.6 billion US dollars) into the stock market and a series of interest rate cuts.

Yejin also mentioned that on the other hand, the market is also concerned about the uncertainty of the Middle East conflict, especially whether the war will affect the region's oil infrastructure.

This situation has become particularly apparent after the killing of Hamas leader Sinwar in Israel last week.

Yejin said, 'I think this is even more dangerous because it's actually a waiting period. When will Israel retaliate against Iran? Tomorrow, the day after tomorrow, or after the presidential election? This part is unclear, and Iran has also threatened to retaliate again.'

Yejin stated that the market is in a "wait-and-see" mode as it assesses how the war disrupts the oil infrastructure. He also added that while previous conflicts were proxy wars, it could now escalate to direct conflict, raising the stakes in the Middle East oil market.

Due to the combined effect of these two forces, along with traders waiting to see which force will have a greater impact on supply and demand dynamics, the oil market is in a deadlock. Prices fluctuate between the low $70s and around $80, as traders react to new developments.

Editor/ping