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

Brent crude oil held steady at approximately $63.86 per barrel on Monday, as the market continued to focus on developments in Iran and Venezuela, both contributing to ongoing supply-side uncertainty. Geopolitical tensions in Iran maintained trader caution, with fears that any further escalation could potentially disrupt regional exports. Concurrently, the situation in Venezuela remained uncertain, particularly influenced by shifts in U.S. policy and the enforcement of sanctions, which have created an unclear future for the country's oil exports and exacerbated overall supply concerns. Last week, oil prices experienced a modest increase, with WTI rising by 1–2%, mirrored by Brent, driven by premiums related to geopolitical risks. However, this upward movement was limited by signs of weak demand and substantial inventory levels. The oil market is currently balanced between factors that could drive prices up and structural challenges such as sluggish demand growth and high supply levels. Traders are carefully observing economic indicators, inventory data, and signals from producers to determine the near-term trajectory of oil prices.