Oil prices eased after a sharp 6% gain last week, but remain near two-week highs. Rising geopolitical tensions between Western countries and major oil producers such as Russia and Iran add to market risks. About this informs Reuters.
Brent crude futures were down 26 cents, or 0.35%, at $74.91 a barrel, while U.S. West Texas Intermediate (WTI) futures were down 27 cents, or 0.38%, at $70.97 a barrel. barrel.
Last week, both contracts posted their biggest weekly gains since late September, and prices hit their highest levels since November 7. It comes after Russia launched a hypersonic missile over Ukraine, seen as a warning to the US and UK over Kiev’s use of their weapons in response to the strikes.
Geopolitical tensions between Russia, Ukraine and the West are expected to continue until the end of the year, affecting prices. With this in mind, Brent oil prices are likely to remain in the range of $70-$80 per barrel as both sides of the conflict seek to strengthen their positions ahead of possible negotiations initiated by the Trump administration.
An additional factor in the tension was Iran’s reaction to the recent IAEA resolution. In response, Tehran stepped up its use of advanced centrifuges to enrich uranium, prompting the threat of increased sanctions. If they are introduced, Iran’s oil exports could be reduced by 1 million barrels per day, which is about 1% of global supply.
