Geopolitical Premium Regains Dominance, Oil Strengthens
Oil prices rose sharply on Friday (February 27th) as the market re-introduced a premium on geopolitical risk after the US-Iran nuclear talks were extended without a breakthrough. Concerns about potential supply disruptions in the Middle East—particularly risks to strategic waterways like the Strait of Hormuz—kept traders cautious even as diplomacy remained ongoing.
In the latest update, Brent was trading around $73.14/barrel (+3.24%), while WTI was at $67.06/barrel (+2.83%). This increase emphasized the daily rally amid changing negotiation headlines, which caused prices to move quickly according to perceived supply risks.
In terms of headlines, the market considered the Geneva round of talks to be fragile: reports of a deadlock over uranium enrichment emerged before the Omani mediator indicated progress and said discussions would continue next week in Vienna at a technical level. This uncertainty is keeping the risk premium firmly attached to oil prices.
On the supply side, market participants are also awaiting the OPEC+ meeting regarding production policy in April, with expectations of a moderate output increase. However, a Reuters survey of economists indicates that while risk premiums could lift prices in the short term, concerns about global oversupply could limit further gains in the second half of the year.
Source: Newsmaker.id
