FX.co ★ Oil Trades Higher Amid Iran, Venezuela Uncertainty

On Monday, West Texas Intermediate (WTI) crude oil steadied at approximately $59.36 per barrel, with market participants focusing on the ongoing issues in Iran and Venezuela, both of which contribute to supply-side uncertainty. In Iran, persistent geopolitical tensions kept traders on edge, worried that any intensification could potentially disrupt exports from the region. Meanwhile, questions about Venezuela's crude oil shipments lingered, especially given the unclear impact of shifts in U.S. policy and sanctions enforcement on the country's oil flow, adding to the overall supply concerns. Last week, oil prices saw slight increases, with WTI rising by 1–2% and Brent following a similar trend, bolstered by geopolitical risk premiums. However, the upward momentum was limited by weak demand indicators and substantial inventories. Looking forward, the oil market teeters between factors that support higher prices and structural challenges such as sluggish demand growth and high supply levels. Traders are keeping a close watch on economic data, inventory updates, and signals from producers to determine the short-term trajectory.