Brent Stable, Market Awaits Oman Outcome
Oil prices are stable ahead of the planned US-Iran talks scheduled for Friday. This diplomatic agenda has reduced the risk of imminent military conflict, thus easing concerns about supply disruptions.
Brent held around $68 per barrel after dropping 2.8% on Thursday. Meanwhile, WTI traded below $64, indicating the market remains cautious as it awaits the outcome of the talks.
Previously, prices had weakened after US President Donald Trump said Iran was negotiating. However, the market then found support after Saudi Arabia cut its selling prices to Asian buyers by less than expected, which was interpreted as a signal that Saudi Arabia still believes demand is not weak.
Despite this, oil is still heading for its first weekly decline since mid-December. This suggests some of the risk premium stemming from Middle East tensions is eroding—even though the region supplies about a third of the world's oil.
According to Samantha Hartke of Vortexa, the market is "reducing" the geopolitical premium and returning its focus to fundamentals: current supply is considered adequate. However, he warned that if US-Iran negotiations deteriorate, the risk premium could quickly rebound.
Beyond the Iran issue, the market is also monitoring other developments: talks involving the US, Ukraine, and Russia reportedly reached an agreement on the first prisoner swap in five months. This process toward de-escalation of the conflict has helped calm global risk sentiment.
Meanwhile, on the industrial front, BP is reportedly seeking partners to increase production and share costs at its Kirkuk oil field in Iraq. In Singapore trading, April Brent rose around 0.4% to $67.82, and March WTI rose 0.5% to $63.58—the market is waiting to see whether the outcome of the negotiations will push prices down further or instead increase the risk premium again. (asd)
Source: Newsmaker.id
