FX.co ★ Crude Oil Climbs on Geopolitical Concerns

WTI crude oil experienced a 2.3% increase, closing at $59.12 per barrel on Friday. This rise came as the markets responded to escalating tensions in Iran and ongoing uncertainties regarding Venezuelan oil supply. This marks the second consecutive session of price increases, resulting in a 1.5% gain over the week. The unrest in Iran, highlighted by reports of a growing death toll and a nationwide internet shutdown, has intensified fears of potential disruptions from this key oil producer. Geopolitical risk premiums have also climbed, reflected in options markets where there is a notable shift towards bullish strategies. Concurrently, uncertainties about Venezuelan oil exports remain salient after the United States' decision to assume control of the nation’s oil sales, raising the possibility of significant stockpiles entering international markets. These supply concerns are further compounded by apprehensions over the impacts of the Russia-Ukraine war on Russian oil exports, even as rising global inventories and oversupply risks continue to temper any potential price increments.