Risk Premium Begins to Fade, Oil Rebounds
Oil prices rallied toward the end of the week after being hit sharply in the previous session. On Friday, Brent traded in the $63.5–$64 per barrel range, while WTI held steady at $59 per barrel—the market trying to catch its breath after the previous day's heavy sell-off.
Sentiment improved as the likelihood of a swift US attack on Iran was deemed to be diminishing. Reports indicated that Israeli Prime Minister Benjamin Netanyahu had asked President Donald Trump to postpone the planned attack, which would automatically reduce the risk of supply disruptions and shipping routes in the region.
However, the market is not yet fully "risk-off." The US is said to be strengthening its military posture in the Middle East—making volatility still likely to emerge at any time if geopolitical headlines change direction.
From a fundamental perspective, oil remains in a tug-of-war phase: geopolitical risks had added to the price premium since the beginning of the week, but as tensions eased, the premium gradually evaporated, and the focus returned to the issue of loose global supply. In the US, price pressure is also starting to be felt by shale producers—Harold Hamm is reportedly considering halting drilling activity in the Bakken when prices become unattractive.
Source: Newsmaker.id
