Oil prices were little changed on Monday, after rising in the previous session, as Iran’s deadly crackdown on protests quelled the civil unrest in the country, reducing the chance of a U.S. attack on the major Middle Eastern producer that could disrupt supplies.
Brent crude was trading at $64.18 a barrel by 0158 GMT, up 5 cents or 0.08%. U.S. West Texas Intermediate for February rose 8 cents, or 0.13%, to $59.52 a barrel. That contract expires on Tuesday and the more active March contract was at $59.36, up 2 cents, or 0.13%.
Iran’s violent crackdown on protests spurred by economic hardship, which officials say killed 5,000 people, quelled the unrest. U.S. President Donald Trump seemed to step back from his earlier threats of intervention, saying on social media Iran had called off mass hangings of protesters, although the country had not announced any such plans.
That appeared to lower the odds of a U.S. intervention that could have disrupted oil flows from the fourth-largest producer among the Organization of the Petroleum Exporting Countries.
The downturn signalled a renewed retreat from multi-month highs reached last week, although prices still settled higher on Friday. Still, U.S. military are moving to the Gulf, underscoring the continued concern.
“The pullback followed a swift unwind of the ‘Iran premium’ that had driven prices to twelve-week highs, triggered by signs of easing in Iran’s crackdown on protesters, compounded by U.S. inventory data showing a substantial crude build and reinforcing bearish supply pressures,” IG market analyst Tony Sycamore said in a note.
Crude stocks were up by 3.4 million barrels in the week ended January 9, the EIA said last week, compared with analysts’ expectations in a Reuters poll for a 1.7 million-barrel draw.
Markets continued to closely watch plans for Venezuela’s oil fields, after Trump said the U.S. would run Venezuela’s oil industry following the capture of Nicolas Maduro.
The U.S. energy secretary told Reuters on Friday that the U.S. is moving as fast as possible to grant Chevron an expanded production license in the country.
But markets were less confident about the prospects for scaled-up Venezuelan production.
“It is becoming clear that Venezuela’s production ramp-up will take many years to play out,” Sycamore said.
(Reporting by Colleen Howe; Editing by Christian Schmollinger)