Global Markets, January 9:
Oil prices climbed for a second straight day on Friday as traders digested mounting concerns over potential supply disruptions linked to geopolitical tensions in Venezuela and Iran, fueling a rally in crude benchmarks. Brent crude futures rose about 0.7% to around $62.4 a barrel, while U.S. West Texas Intermediate (WTI) crude increased roughly 0.68% to about $58.1, marking gains for a third straight week amid heightened market uncertainty. Analysts said persistent unrest in Iran and uncertainties over Venezuela’s future oil output have elevated risk premiums, outweighing recent oversupply worries in the global energy market.
Markets have been monitoring the aftermath of U.S. actions toward Venezuela’s oil sector, including the seizure of Venezuelan tankers and claims that Washington could control the country’s oil sales, which has added to supply risk perceptions. At the same time, civil unrest in Iran — a significant Middle Eastern oil producer — has raised fresh questions about output stability, while broader geopolitical risks, including tensions affecting Russian oil flows, have further supported crude prices. Despite the rise, some analysts caution that long-term oversupply concerns remain a counterweight, especially if geopolitical tensions do not escalate further.
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