Diplomacy Continues, Middle East Risks Remain Unabated
Oil prices held steady after the United States and Iran agreed to resume nuclear talks next week, following a round of discussions on Thursday. While the diplomatic channel remains open, the market remains cautious as the massive deployment of US troops in the Middle East keeps sentiment tense.
On the market, Brent traded below $71/barrel after closing virtually unchanged on Thursday, while WTI hovered around $65/barrel. Iran said the latest talks in Geneva showed good progress, but sources familiar with the US position said the American delegation left the meeting disappointed. The two sides agreed to meet again in Vienna.
Although oil market pressures have eased somewhat this week, prices remain relatively high for the year as concerns about a potential US attack on Iran help offset expectations of a global supply surplus. Investors will also be watching the OPEC+ meeting on Sunday, which could influence April's supply policy, while the risk of conflict keeps the outlook clouded.
Haris Khurshid (Karobaar Capital) assessed that the current situation lacks "new surprises"—diplomacy and escalation are both still possible—so when probabilities change but the physical supply situation remains unchanged, oil prices tend to churn rather than form a clear trend.
On the security front, a Fox News report stated that the US 5th Fleet base in Bahrain was downgraded to "mission-critical" personnel amid concerns about a potential attack, emphasizing that geopolitical risks remain a driver of volatility.
In Asian trading, April Brent (contract expiring Friday) was virtually unchanged at around $70.70/barrel (12:01 p.m. Singapore), May Brent was stable at around $70.83/barrel, while April WTI was flat at around $65.27/barrel. (asd)
Source: Newsmaker.id
