Oil Prices 'On Fire,' Geopolitics Take Over
Oil prices rose on Friday, supported by two major issues: supply risks from Venezuela and concerns about Iranian production disruptions. The market has re-introduced a "geopolitical premium" after a strong rally the previous day.
Brent is hovering around $62 per barrel and WTI is around $58 per barrel. Both resumed their gains after surging more than 3% on Thursday, maintaining the potential for weekly gains.
In Iran, the escalating domestic situation is adding to uncertainty. A nationwide internet blackout was reported as protests spread in several cities, raising market concerns that an escalation could disrupt energy activities—both operationally and logistically.
Meanwhile, Venezuela remains a focus. The US government is pushing for tighter controls on Venezuelan oil sales, and the White House is scheduled to meet with oil and gas executives and traders to discuss export schemes and plans to restore the energy sector.
Behind the scenes, business competition is heating up: companies like Chevron, as well as global trading houses Vitol and Trafigura, are reportedly vying for the mandate to market Venezuelan oil—including the potential sale of up to 50 million barrels of PDVSA's stockpile—amid the embargo and the issue of tanker seizures.
Meanwhile, risks from Eastern Europe remain. Russia announced the use of Oreshnik hypersonic missiles in its latest attack on Ukraine—reminding markets that escalating conflict could still impact energy and export routes in the region.
Source: Newsmaker.id
