WTI hovers below $59.00 as US-Iran tensions ease, weekly loss looms
WTI price is set for a modest weekly loss following three consecutive weeks of gains.
Crude Oil prices decline as easing fears of a potential US military strike on Iran reduce geopolitical risk premiums.
The US seized another Venezuela-linked Oil tanker ahead of a Trump–Machado meeting in the Caribbean.
West Texas Intermediate (WTI) Oil price moves little after two days of more than 3% losses, trading around $58.80 during the Asian hours on Friday. WTI price faces challenges as geopolitical risk premiums faded following easing fears of a possible US military strike on Iran. Crude Oil prices are heading for a modest weekly decline after three straight weeks of gains.
US President Donald Trump said he had stepped back from threats of military action after receiving assurances that further killings would not occur and executions would be halted. Market sentiment was also supported by reports that Israel and other regional allies urged Washington to delay any action, amid concerns over potential retaliation.
These developments lowered fears of an imminent conflict that could disrupt Iranian Oil output or key regional shipping lanes. However, analysts cautioned that risks have not disappeared, keeping markets alert in the near term. Analysts also maintained a bearish outlook, citing expectations of ample supply this year despite earlier OPEC projections for a more balanced market.
Oil major Shell on Thursday released its 2026 Energy Security Scenarios report, outlining a bullish outlook for long-term energy demand and Oil growth, with primary energy needs projected to be significantly higher by 2050, per Reuters.
According to another report by Reuters, the United States seized another Venezuela-linked Oil tanker in the Caribbean ahead of a scheduled meeting between President Donald Trump and opposition leader María Corina Machado. This marks the sixth vessel targeted under US sanctions on Venezuelan Oil, underscoring ongoing enforcement efforts against sanctioned shipments.
Disclaimer: The content available on Mitrade Insights is provided for informational and marketing purposes only. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
