Oil prices have recorded their longest streak of weekly gains since June, bolstered by supply concerns stemming from unrest in Iran and uncertainty surrounding Venezuelan oil production. Brent crude advanced by 2.2 per cent to settle at US$63.3 a barrel, marking its second consecutive session increase. This surge resulted in an overall weekly gain of approximately 2.8 per cent for Brent. West Texas Intermediate futures also experienced gains, settling near US$59 a barrel after rising more than 5 per cent over the previous two sessions.
Market attention remains focused on escalating protests in Iran, which have caused travel disruptions and raised concerns about potential impacts on the country’s crude oil output. Iran produces over 3 million barrels a day. The situation has been further complicated by warnings from US President Donald Trump, who stated that Tehran would face severe consequences if protesters were harmed during the unrest.
Adding to the market’s anxieties is the situation in Venezuela. Confusion over Venezuelan supply arose after the US cancelled planned attacks and moved to oversee oil exports. This development initially put downward pressure on prices. However, the geopolitical risk premium quickly returned, driving prices higher as the market assessed the potential impact on global supply.
