Oil prices surge to two-week winning streak as Iran supply fears grip markets
Crude prices edged lower in early Asian trading as the market weighed steady physical demand against renewed geopolitical headlines that have yet to translate into tangible supply disruption. Front month WTI futures slipped 0.3% to $57.91 per barrel, while Brent fell 0.3% to $61.76 per barrel, leaving both benchmarks pinned near the lower end of recent ranges.
The muted reaction underscores how traders continue to prioritize observable flows and inventories over event risk that has not constrained exports.
The latest pressure point is rising tension between the U.S. and Venezuela, after President Trump said on 2025-12-29 that the U.S. recently carried out an attack on a dock area in Venezuela. In isolation, such statements would typically inject a risk premium into prices.
This time, the response was restrained, reflecting confidence that the current supply remains adequate and that demand conditions have not deteriorated materially. Analysts note that consumption is holding relatively steady, limiting downside momentum even as prices struggle to attract sustained buying interest.
For investors, the message is that oil remains caught between stable fundamentals and episodic geopolitical risk. The base case is continued range trading, with prices reacting briefly to headlines but reverting as long as physical supply is not disrupted.
The risk scenario is a sharper move if tensions escalate into measurable export losses or logistical bottlenecks. Near term, markets will focus on confirmation of any operational impact in Venezuela and on signals that demand conditions are shifting enough to break the current stalemate.