Global crude oil prices climbed, supported by rising concerns about possible disruptions in supply from key producers Venezuela and Iran, even as markets remain cautious about broader demand and inventory conditions.
Oil benchmarks Brent crude and West Texas Intermediate (WTI) saw gains for a second consecutive session, with both contracts heading for their third straight weekly increase. Prices rose amid mounting uncertainty over future output from Venezuela and escalating unrest in Iran, which have heightened fears of supply interruptions.
Analysts point to geopolitical tensions as the main driver behind the gains, including recent political developments in Venezuela that could affect how its crude oil is sold globally, and growing protests in Iran that have raised questions about the stability of its oil exports. Major oil firms are reportedly competing for deals to handle Venezuelan crude under U.S. government oversight, adding to market speculation.
While the near-term supply concerns have lifted prices, broader market factors such as global oversupply and high inventories are seen by some observers as a restraint on how far oil can rally without actual disruptions materialising.
Key points:
• Oil prices climbed for the second straight session, tracking supply risk premiums.
• Venezuela and Iran tensions are central to price dynamics.
• Global oversupply may check further sharp rises.
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