Oil holds steady as Iran strike fears fade; Venezuela resumes exports
Oil holds steady as Iran strike fears fade; Venezuela resumes exports
Oil prices edge lower as fears of a U.S. strike on Iran ease and inventories rise; Venezuela restarts exports amid a balanced energy outlook.
From Perth, oil prices steadied on Friday after fears of a U.S. strike on Iran eased and inventories rose. Brent crude traded at $63.73 per barrel, down 3 cents, while U.S. West Texas Intermediate stood at $59.22 per barrel, up 4 cents, as of 0223 GMT. Earlier in the week, prices touched multi-month highs on Iranian protests and signals about possible military action, but a calmer tone emerged as President Trump suggested Tehran's crackdown was easing, easing some supply‑disruption concerns.
The softer mood was reinforced by data from the U.S. Energy Information Administration showing crude and gasoline inventories rising more than analysts had expected, which dampened the market’s run and helped unwind the earlier Iran premium that had propelled prices higher.
Analysts noted that the recent inventory build and the easing geopolitical risk contributed to a balanced tone in the market. Venezuela has begun reversing production cuts and resumed exports, adding to supply dynamics that remain mixed but supportive of a steadier price range in the near term. On the demand side, Shell released its 2026 Energy Security Scenarios with a bullish case for energy demand and oil growth, suggesting primary energy demand by 2050 could be about 25% higher than last year.
OPEC also signaled a balanced picture for 2026, with demand expected to rise in 2027 at a pace similar to this year, implying continued alignment between supply and demand. As traders digest inventory trends and potential shifts in geopolitical risk, prices are likely to remain range‑bound until clearer signals emerge from global energy flows and policy developments.
