Brent Strengthens, OPEC+ and Iran Determine Price
Brent crude prices rebounded on Friday (February 27th), moving to the US$72 per barrel area after the market re-introduced a "risk premium" due to uncertainty surrounding the US-Iran nuclear negotiations. This movement marked a recovery from the previous session, when prices were pressured by hopes that diplomacy could ease tensions in the near future.
The market believes the negotiation process has not yet produced a final "deal." The third round of talks in Geneva concluded with signs of progress, but the Omani mediator confirmed that discussions will continue next week in Vienna at a technical level. This format is typically used to discuss the most sensitive details such as enrichment parameters, verification mechanisms, and sanctions relief schemes—meaning the market must still brace for rapidly changing headlines.
On the risk side, the issue of uranium enrichment remains a crucial sticking point. Any sign of a deadlock or potential escalation could immediately raise concerns about supply from the Middle East. Although there are no physical supply disruptions currently, traders tend to consider worst-case scenarios—ranging from tightening sanctions to escalating tensions—as regional energy shipping routes remain strategic for global supply.
Beyond geopolitics, market participants are also awaiting the OPEC+ decision on supply policy for April. Moderate production increases are expected, but the final direction remains heavily influenced by US-Iran risk dynamics. The combination of these two factors keeps Brent "headline-driven": strengthening when risks intensify, but vulnerable to corrections if diplomacy appears smooth or the market refocuses on oversupply signals.(Cp)
Source: Newsmaker.id
