Quick overview

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Oil stabilized following its largest drop since June, as the US said it would postpone attacking Iran for the time being. After falling 4.2 percent on Thursday, Brent was trading close to $64 per barrel, while West Texas Intermediate was close to $59.

According to the New York Times, Israeli Prime Minister Benjamin Netanyahu requested that President Donald Trump delay his plans to attack Iran. This has decreased the likelihood that the US would react to the violent protests in the Islamic Republic right away, which might have caused shipping or oil production to be disrupted.

Washington is increasing its military presence in the Middle East, however. According to Fox News, which cited military sources, at least one aircraft carrier is en route to the area, and additional military equipment is expected to be deployed there in the coming days and weeks.

Oil is expected to close the week with little change after rising since January 8 due to worries that the US would target OPEC’s fourth-largest producer, endangering more than 3 million barrels per day of production.

Prices, which are coming off their worst year since 2020 as output gains threaten to outpace slow demand growth, have also increased due to upheaval in Venezuela and disruptions to Kazakh exports from the Black Sea. With the seizure of a sixth oil tanker close to Venezuela, the US is stepping up its pressure on the use of sanctioned ships in the Caribbean.

However, as part of the US government’s efforts to market the barrels, Trafigura Group is scheduled to release its first oil cargo from the Latin American country in storage facilities in Curacao.