Oil 'Holding Its Breath'! Awaiting Major Iran-US Meeting at the White House
World oil prices began to stabilize but remained cautious at the start of Asian trading after a strong rally for four consecutive days. This increase was the largest in more than six months due to concerns about supply disruptions from Iran. US crude (WTI) and Brent crude continued to move higher as geopolitical sentiment once again dominated the market.
The main focus now turns to the planned meeting of US officials at the White House to discuss the situation in Iran. The US President continued to highlight the wave of major protests in Iran and signaled that he would act accordingly. Market concerns are that the political conflict could escalate into production disruptions—even though Iran is a major oil exporter.
The turmoil in Iran, coupled with dynamics from Venezuela and other geopolitical factors, has re-priced risk into oil prices after the market was previously depressed due to concerns about abundant supply. This rapid rally was also strengthened by the fact that many traders had previously held short positions, so when risk increased, prices quickly climbed.
However, there are also factors that are holding prices back from immediately "exploding." Industry reports indicate a rise in US crude oil inventories, and if official data confirms this, it could remind investors that global supply remains relatively loose. This scenario could prevent excessively rapid increases.
For now, oil prices are in a "hold your breath" phase. If the White House meeting yields signs that the conflict could escalate or Iranian production is disrupted, prices could continue to rise. Conversely, if tensions subside or are perceived as under control, the market could choose to consolidate previous gains. (az)
Source: Newsmaker.id
