Oil edge up as Iran supply risk counters Venezuela export resumption

Oil prices edged higher on Monday as escalating protests in Iran sparked concerns about supplies from the OPEC producer, while efforts to resume oil exports from Venezuela and expectations the market will be oversupplied this year limited gains, Reuters reported.

Brent crude futures climbed 5 cents to $63.39 a barrel by 0433 GMT while U.S. West Texas Intermediate crude was at $59.16 a barrel, up 4 cents.

Both contracts rose more than 3% last week to clinch their biggest weekly rise since October as Iran's clerical establishment intensified its crackdown on the biggest demonstrations since 2022.

While a premium has formed in oil prices in recent days, the market is still underestimating the geopolitical risk from a wider Iran conflict that may impact oil shipments at the Strait of Hormuz, Saul Kavonic, head of energy research at MST Marquee.

"The market is saying show me the disruption to supply before materially responding," he added.

The civil unrest in Iran has killed more than 500 people, a rights group said on Sunday.

"There have also been calls for workers in the oil industry to down tools amid the protests," ANZ analysts led by Daniel Hynes said in a note.

"The situation puts at least 1.9 million barrels per day of oil exports at risk of disruption," they added.

U.S. President Donald Trump has repeatedly threatened to intervene if force is used on protesters.

The president is expected to meet senior advisers on Tuesday to discuss options for Iran, a U.S. official told Reuters on Sunday.