Global oil prices have shown an increase for the second consecutive day amid uncertainty regarding future supplies from Venezuela and heightened concerns about production in Iran, where mass unrest continues.
This is reported by Finway
Brent and WTI Oil Price Dynamics
Brent crude oil futures rose by 40 cents (0.7%) to $62.39 per barrel. WTI crude oil added 35 cents (0.6%), reaching $58.11 per barrel. Both benchmark oil grades recovered by more than 3% on Thursday, marking the first significant correction after two days of decline. For the week, Brent is expected to rise by 2.7%, while WTI is projected to increase by 1.4%.
Geopolitical Risks and Market Impact
As noted by Moomoo ANZ market strategist Tina Teng, a key factor behind the price surge was U.S. President Donald Trump’s statement regarding control over Venezuelan oil exports. This could create additional pressure on the market and support price increases following a period of discounted sales.
“In the coming days, the market will focus on how Venezuelan oil stored in warehouses will be sold and supplied. The issue of oversupply may remain relevant if there are no restrictions on sales,” Teng said.
In addition to the situation in Venezuela, civil unrest in Iran—one of the leading oil producers in the Middle East—and risks associated with the impact of the Russian-Ukrainian war on Russian oil exports add uncertainty regarding supply stability.
According to Haitong Futures, oil prices have risen after several days of relative stability. However, despite the short-term increase, global oil inventories are rising, and the oversupply remains a key limiting factor for further price growth. In the absence of heightened risks surrounding Iran, the increase in oil prices is likely to be short-lived.