Oil Holds Near $66 on US Weather & Iran Risks
Oil prices were steady as the market weighed two major factors: the impact of a cold wave in the US that could disrupt energy operations, and the risk of Iranian supply after US President Donald Trump renewed threats against Tehran.
Brent oil traded near $66 per barrel, maintaining Friday's 2.8% surge—its biggest daily gain in two weeks. Meanwhile, WTI held around $61.
On the weather front, a winter storm sweeping across the US has market participants monitoring potential supply disruptions. Exxon Mobil reportedly shut some units at its Texas refinery complex due to freezing weather, while natural gas futures rose due to increased heating demand.
Meanwhile, OPEC+ is said to be still aiming to maintain production next month when the group meets on Sunday. However, geopolitical tensions continue to add to the “risk premium” after the US deployed naval assets to the Middle East, fueling speculation that threats against Iran could escalate.
Data on speculator positions also showed bullish sentiment strengthening: hedge funds raised bullish bets on oil to their highest level since August for the period through January 20. Despite this, the market remains cautious due to the glut: production from the US and major exporters is expected to grow faster than demand.
Another factor that temporarily curbed the decline was a disruption at the Caspian Pipeline Consortium's (CPC) Black Sea export terminal, but the facility has now returned to normal operation, allowing Kazakhstan's export flows to return to normal. At 1:20 p.m. in Singapore, Brent March was steady at $65.90 per barrel, while WTI March was virtually unchanged at $61.10.
Source: Newsmaker.id
