Oil Holds Breath, Iran & Supply in Focus
Oil prices held steady as investors weighed two factors: the restoration of operations at a key Black Sea export terminal and the risk of Iranian supply after US President Donald Trump renewed threats against Tehran.
Brent traded below $66 per barrel after surging 2.8% on Friday—its biggest daily gain in two weeks. WTI hovered around $61.
On the supply side, the Caspian Pipeline Consortium (CPC) said it had reactivated offshore mooring, allowing oil flows to return to normal through the route that handles the bulk of Kazakhstan's exports.
However, Trump's focus on Iran added a "risk premium" to prices. The US is said to be deploying naval assets to the Middle East, fueling speculation that the threat of attacking the Iranian regime could increase—and thus the potential for disruptions to Iranian production.
Concerns about Iran and disruptions to the CPC pipeline prompted hedge funds to increase their bullish positions on oil to their highest level since August in the week ending January 20. Despite this, the market remains cautious due to glut concerns: OPEC+ and other producers are pumping more, while production growth in the US and major exporters is seen outpacing demand growth.
Meanwhile, traders are also monitoring the impact of the winter storm in the US on energy facilities. Exxon Mobil shut some units at its Baytown, Texas, refinery complex due to freezing weather, while natural gas futures surged as heating demand increased. At 11:06 a.m. in Singapore, Brent for Match settlement was flat at $65.85 per barrel, while WTI for March delivery was barely changed at $61.02 per barrel. (asd)
Source: Newsmaker.id
