Oil Prices Calm, But Conflict and Sanctions Poised to Destabilize Prices?
Oil prices moved steadily in early trading on Tuesday, with Brent hovering around $63.24 per barrel and WTI around $59.42 per barrel. Both maintained gains of more than 1% from Monday's session. The market is currently weighing several factors: the Ukrainian drone attack on Russian energy facilities in the Black Sea region, political tensions between the US and Venezuela, and mixed expectations regarding US oil and fuel inventory data. Export terminals in the Black Sea have partially resumed operations, but the damage continues to keep the market cautious.
From a geopolitical perspective, the Russia-Ukraine conflict appears far from over, while the situation in Venezuela is also gaining attention. There are concerns that US political pressure on Venezuela could disrupt domestic stability and ultimately threaten the country's oil production and exports. Amid these conditions, analysts see the market, particularly for products like diesel/gasoil, as being on the verge of recovery, meaning demand could strengthen if there are no further major disruptions. Meanwhile, OPEC+ reiterated that it would only increase production slightly in December and then hold off on increasing it in the first quarter of next year due to concerns about oversupply. This cautious stance by OPEC+ helped keep oil prices from falling further. However, market sentiment remains mixed, as preliminary polls indicate that US crude oil inventories are likely to fall, while refined product inventories are actually rising. The combination of geopolitical risks, OPEC+ policies, and mixed stockpile data means that oil prices are currently likely to remain stable, but full of potential surprises. (az)
Source: Newsmaker.id
