Oil Stabilizes Amid Return of Kazakhstan Exports and Rising Risks from Iran

SadaNews - Oil prices stabilized as investors balanced the resumption of operations at a major Black Sea export terminal with monitoring of risks threatening Iran's production, following renewed threats from U.S. President Donald Trump against Tehran.

Brent crude traded below $66 a barrel after jumping by 2.8% on Friday, marking the largest daily gain in two weeks. West Texas Intermediate crude also stabilized near $61.

The "Caspian Pipeline Consortium" reported that it has reinstated a maritime mooring point into service, allowing crude flows along a route that represents the bulk of Kazakhstan's exports.

Risks from Iran and Bullish Bets

Nevertheless, Trump's renewed focus on Iran has added a degree of risk premium to prices. The U.S. President dispatched naval assets to the Middle East, raising speculation that he may carry out his threats to attack the Iranian regime.

Concerns about Iran and disruptions at the "Caspian Pipeline Consortium" have led hedge funds to increase their bullish bets on crude to the highest level since August in the week ending January 20.

Futures prices have risen at the start of the year, despite expectations of a supply surplus as "OPEC+" and other producers continue to pump more oil.

Separately, traders are monitoring the impact of a winter storm sweeping across the United States on energy facilities. "ExxonMobil" has shut down some units at its refining complex in Baytown, Texas, due to freezing weather, while natural gas futures surged with increased demand for heating.