Oil Steady, Iran & Supply Leading Attractive
Oil prices held steady as investors weighed the resumption of operations at a key Black Sea export terminal, while monitoring supply risks from Iran after US President Donald Trump renewed threats against Tehran.
Brent remained below $66 per barrel after surging 2.8% on Friday—its biggest daily gain in two weeks. Meanwhile, WTI held around $61.
On the supply side, the Caspian Pipeline Consortium (CPC) announced it had reactivated offshore mooring, allowing oil flows to return to normal through the pipeline that handles the bulk of Kazakhstan's exports.
However, the market maintained a "risk premium" as Trump's focus on Iran intensified. The US reportedly deployed naval assets to the Middle East, fueling speculation that threats against the Iranian regime could escalate into action, potentially disrupting Iranian output.
Iran concerns and the CPC disruption prompted hedge funds to increase their bullish positions on oil to their highest level since August in the week ending January 20. Nevertheless, the market remains cautious due to the glut: OPEC+ and other producers are pumping more, while US production growth and that of major exporters are seen outpacing demand growth.
Meanwhile, the winter storm in the US is also being monitored as it could impact 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 1:20 p.m. in Singapore, Brent for March settlement was steady at $65.90 per barrel, while WTI for March delivery was barely changed at $61.10.
5 Key Points:
- Brent was steady at $65.90, WTI at $61.10 at 1:20 p.m. in Singapore.
- Brent had previously surged 2.8% on Friday, its biggest daily gain in two weeks.
- CPC reactivated offshore moorings, helping normalize Kazakhstan's exports.
- Iran risks rose after Trump sent naval assets; the market added a risk premium.
- Hedge funds are at their highest bullish level since August (week to January 20), but the market remains wary of glut risks and the US winter storm. (asd)
Source: Newsmaker.id
