Oil Prices Stabilize After Spike on Geopolitical Risk
Oil prices erased earlier losses in recent trading, as traders eyed the potential United States response to the ongoing unrest in Iran. Concerns intensified after reports emerged that some personnel had been advised to leave a US air base in Qatar, reviving the geopolitical risk premium in energy markets.
Brent crude oil traded above US$65 per barrel, after rising more than 9% in the previous four sessions. Reports of a limited evacuation of personnel from Al Udeid Air Base in Qatar, previously targeted by Iranian retaliatory attacks, heightened market concerns about a potential escalation of conflict in the Middle East.
US President Donald Trump encouraged Iranians to continue protesting against the government of Supreme Leader Ayatollah Ali Khamenei and said Washington would “act appropriately” after learning the death toll from the demonstrations. Trump also indicated that further action would be determined based on the outcome of a National Security Council meeting.
Market participants are now monitoring the turmoil in Iran and the possibility of US intervention, which could threaten the country’s crude oil production of approximately 3.3 million barrels per day, as well as its gas liquids supply. The prospect of supply disruptions from one of OPEC's major producers is a key factor supporting oil prices amid global uncertainty.
Since the beginning of the year, oil prices have strengthened amid rising geopolitical tensions in Iran and Venezuela, restoring the risk premium after a prolonged period of decline due to concerns about oversupply. Although recent data shows an increase in US crude oil inventories, market sentiment remains sensitive to geopolitical developments, with Brent for March delivery trading around US$65.68 per barrel and WTI for February trading around US$61.34 per barrel. (alg)
Source: Newsmaker.id
