WTI maintains position above $59.00 as supply risks grow
WTI price climbs as supply risks increase amid escalating unrest in Iran.
Trump warned Tehran against force on protesters, while Iran cautioned against any US or Israeli intervention.
Oil gains may be limited by expected Venezuelan export resumption and forecasts of market oversupply.
West Texas Intermediate (WTI) Oil price extends its gains for the third successive session, trading around $59.10 per barrel during the Asian hours on Monday. Crude Oil prices rise as supply risks grow amid escalating protests in Iran. The country exports nearly 2 million barrels per day (bpd) and is OPEC’s fourth-largest producer, making any escalation a material threat to global supply.
The unrest has moved into its third week, reportedly claiming hundreds of lives, as authorities signal a tougher response. US President Donald Trump warned Tehran against using force on protesters and hinted at possible action if the crackdown escalates, while Iranian officials cautioned against any US or Israeli involvement.
Oil price gains may be capped by expectations that Venezuelan exports could resume following the ouster of President Nicolas Maduro and forecasts of market oversupply this year. Trump said last week that Caracas is set to hand over up to 50 million barrels of sanctioned oil to the United States, per Reuters.
Uncertainty over Venezuela’s crude shipments remained as shifting US policy and sanctions clouded the outlook for its Oil flows. Trump also warned Cuba that Venezuelan oil and financial support would be cut unless Cuban leaders reached an agreement with Washington.
Meanwhile, traders are also monitoring potential supply disruptions from Russia amid ongoing Ukrainian attacks on Russian energy facilities and the prospect of tougher US sanctions on Russian energy.
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