Oil Prices Rise, Focus on Iran and Venezuela
Oil prices continued to rise as the market weighed geopolitical risks, especially after the sharp releases in the previous session. WTI oil moved above US$58 per barrel, while Brent held around US$62 per barrel.
Sentiment strengthened after President Donald Trump threatened to hit Iran "hard" if the Iranian government killed protesters amid the ongoing situation. This statement re-sensitized the market to potential supply disruptions from the Middle East.
Meanwhile, attention was also focused on the United States' move to tighten controls on Venezuela's oil exports and energy sector. US policies and pressure on Venezuela are considered to affect supply flows, thus supporting prices.
In addition to geopolitical factors, there are technical drivers. The annual rebalancing of commodity indices is expected to trigger a return of capital inflows into oil, contributing to short-term upward momentum.
However, the market still anticipates a potential supply surplus this year, which could pressure prices in the coming months. In fact, a report stated that Goldman Sachs client sentiment towards oil is at its most bearish in 10 years.
Meanwhile, investors are also closely monitoring the agenda in Washington. Several oil industry executives—including those from Chevron and Exxon Mobil—are scheduled to meet with Trump and senior officials at the White House to discuss plans to rebuild Venezuela's energy sector, which could potentially impact global oil policy and supply.
Source: Newsmaker.id
