Oil prices extended gains in Asian trading on Tuesday, rising for a fourth consecutive session amid supply disruption risks from Iran, where intensifying anti-government protests have stoked geopolitical fears.
As of 21:18 ET (02:18 GMT), Brent Oil Futures expiring in March rose 0.4% to $64.10 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.4% to $59.70 per barrel.
Brent contract reached over a seven-week high in the previous session, while the WTI benchmark rose to a one-month high.
Iran unrest fuels supply fear premium
Iran, a key OPEC producer, is facing its biggest anti-government demonstrations in years, with widespread violence and reported heavy casualties as security forces crack down on protesters.
U.S. President Donald Trump has warned of possible military action if Iranian authorities continue to use lethal force against demonstrators.
Trump also announced plans to impose a 25 % tariff on any country “doing business” with Iran, a move aimed at isolating Tehran economically.
"China is a key buyer of Iranian oil. Whether this secondary tariff threat is sufficient to push China away from Iranian oil remains to be seen," ING analysts said in a research note.
A Reuters report said Trump is expected to meet senior advisers on Tuesday to discuss options on Iran.
Russia’s CPC terminal supply under pressure
Supply risks were not limited to the Middle East. Russia’s oil export infrastructure has come under repeated attack amid the prolonged Ukraine conflict.
Ukrainian forces have struck at Russian oil facilities and export hubs, including the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk.
Exports of Kazakh oil from the CPC terminal will come under significant pressure this month. Shipments are expected to come in between 800-900k b/d, around 45% below initial expectations, according to Bloomberg.
Venezuela prepares to re-enter export markets
Meanwhile, another OPEC producer, Venezuela, is preparing to resume oil exports after a period of disruption.
Following political shifts in Venezuela and the capture of President Nicolas Maduro, Trump said last week that Caracas would hand over up to 50 million barrels of oil to the U.S., a move that could eventually add barrels back into the global market.
Source: Investing