Oil Prices Soar, Iran Sentiment Strengthens—Venezuela Possibly a Counterbalance
Oil prices rose sharply on Tuesday (January 13th) as the market re-priced geopolitical risks. The biggest concerns stemmed from Iran—from escalating protests to threats of US policy—making traders more focused on potential supply disruptions than the potential for additional supply from Venezuela.
In recent trading, Brent was trading in the range of $65.4–$65.5 per barrel, while WTI was hovering around $61.0 per barrel. This increase puts oil back near its highest level in recent weeks, following a consecutive rally since the beginning of the year.
Market pressure intensified after US President Donald Trump announced plans for 25% tariffs on countries still doing business with Iran—a move that could theoretically depress Iranian exports, especially if major buyers like China also reduce purchases.
From a market psychology perspective, this threat alone is enough to raise the “price of risk” as market participants are wary of the prospect of a real supply disruption.
Supply concerns are also emerging from the Black Sea. Reuters reported that tankers waiting to load near the CPC terminal (a key route for Kazakhstan's oil exports) were hit by drone attacks—adding new risks to the global supply chain.
While the potential for additional supply from Venezuela could provide a cushion against the rally, the market currently appears to be opting for a "defensive" approach: anticipating supply disruptions first, and calculating additional supply later. (yds)
Source: Newsmaker.id
