Oil prices recorded their longest streak of weekly gains since June, climbing amid escalating protests in Iran and heightened geopolitical tensions, despite forecasts of a global supply surplus this year.
West Texas Intermediate (WTI) crude stabilized near $59 per barrel after rising more than 5% over the previous two sessions. Market participants are closely watching Tehran, where authorities have intensified crackdowns on protesters, threatening harsh penalties, including the death sentence, for “rioters” targeting public property or clashing with security forces.
Latest Oil Prices:
WTI Crude • 59.12 +1.36 +2.35%
Brent Crude • 63.34 +1.35 +2.18%
Murban Crude • 63.50 +1.18 +1.89%
Louisiana Light • 57.46 -0.96 -1.64%
Bonny Light • 78.62 -2.30 -2.84%
Opec Basket • 3 days 58.76 +0.25 +0.43%
Mars US • 70.06 -0.92 -1.30%
Gasoline • 1.781 +0.020 +1.15%
Natural Gas • 3.169 -0.238 -6.99%
“The situation in Iran is now the most serious challenge faced by the regime since the 2022 national uprising,” said an energy market analyst. “Disruptions to exports and domestic operations are clearly reflected in rising options volatility, with bullish bets hitting levels not seen since July.”
Iran produces over 3 million barrels of crude per day, and ongoing protests, coupled with flight disruptions, are feeding concerns about near-term supply reliability. The unrest temporarily diverted attention from Venezuela, where former U.S. President Donald Trump announced plans to allow American oil companies to invest $100 billion of private capital to develop Venezuelan oil infrastructure.
Trump emphasized that the U.S. “controls the state engagement” and intends to designate specific companies authorized to operate in Venezuela, providing security guarantees for their operations. Meanwhile, Venezuela’s acting president, Delcy Rodríguez, condemned the move as an “unlawful and criminal act” while expressing a desire for diplomacy and mutually beneficial agreements.
Despite expectations of a significant oil surplus this year, futures have climbed for three consecutive weeks. Analysts note the market remains caught between rising geopolitical risks and increasing inventories.
“Crude is oscillating in a narrow range as supply from Venezuela and higher production elsewhere weigh on prices,” said Robert Rennie, head of commodities research at Westpac Banking. “We may see prices hover around the $50 mark during Q1, even as geopolitical risks remain elevated.”
Goldman Sachs has warned clients that sentiment toward oil is the most bearish seen in a decade, yet short-term gains illustrate how quickly markets can react to political instability.
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