Oil Steady After Sharp Drop, Iran Risk Eases
Oil prices moved relatively calmly in the Asian session on Friday, a day after recording their biggest drop since June. The market assessed the likelihood of an imminent US attack on Iran as diminishing, causing the "geopolitical risk premium" that had boosted prices this week to begin evaporating.
Brent traded around US$63.6 per barrel after plunging 4.2% on Thursday, while WTI hovered around US$59.1 per barrel. Yesterday's major correction occurred as market participants reduced risk positions following signals that a military escalation was not imminent.
One trigger was reports that Israeli Prime Minister Benjamin Netanyahu had asked US President Donald Trump to delay a planned attack on Iran. This "hold on" signal reduced the likelihood of sudden disruptions to Iranian production or strategic shipping routes in the Gulf region.
Despite the easing of tensions, the market has not fully relaxed. The US is said to be increasing its military presence in the Middle East, including the shifting of assets such as aircraft carriers and the addition of other capabilities in the coming days and weeks—making oil prices remain sensitive to geopolitical headlines.
On a weekly basis, oil is expected to end nearly flat. Prices have soared since January 8 due to concerns that Iran (a major OPEC producer) could be affected, coupled with Venezuelan turmoil and disruptions to Kazakhstan's exports, which have temporarily tightened supply.
In the Caribbean, US pressure on the use of vessels linked to Venezuelan sanctions has also increased, including tanker seizures. However, the flow of Venezuelan oil cargoes to storage facilities like Curaçao remains in the spotlight, making regional supply dynamics still volatile.
5 key points:
- Oil stabilizes after biggest drop since June
- Brent US$63.6, WTI US$59.1
- Signals of US delaying attacks lower Iran's risk premium
- US military presence increases, market remains cautious
- Other supply factors: Venezuela & Kazakhstan still influence sentiment. (asd)
Source: Newsmaker.id
