Oil Rises Slightly, Market Awaits US-Iran Meeting
Oil prices rose on Monday (February 16) as the market weighed two competing forces: hopes for a de-escalation in US-Iran nuclear talks this week versus the potential for an increase in OPEC+ supply starting in April.
Brent closed up 90 cents (+1.33%) at $68.65/barrel, while WTI was at $63.75/barrel, up 86 cents (+1.37%) at 2:14 p.m. EST—without settlement due to the Presidents' Day holiday in the US.
The market believes the "risk premium" is still difficult to completely eliminate. Concerns about supply disruptions due to US-Iran tensions remain a price support, especially with the second round of talks in Geneva scheduled for Tuesday, and ahead of the negotiations (mediated by Oman), Iran's foreign minister also met with the head of the IAEA on Monday.
However, while geopolitical risks could boost prices, OPEC+ has the potential to act as a brake: the producer group is reportedly leaning towards resuming production increases starting in April after a three-month pause. Liquidity is also thin due to the Lunar New Year holidays in China, South Korea, and Taiwan, making price movements prone to choppy movements, although the main direction remains driven by geopolitical headlines.
Source: Newsmaker.id
