West Texas Intermediate (WTI) crude oil prices traded around $97.80 per barrel during Asian hours on Thursday, following a partial easing of US sanctions on Venezuela’s state-owned oil and gas firm by the Treasury Department. This move allowed companies to engage in limited business with Venezuela, which helped soften supply concerns and contributed to the recent easing in crude prices after two days of gains [1].
The White House also announced that President Donald Trump would grant a 60-day waiver of Jones Act requirements, permitting goods shipped between US ports to move on non-US-flagged vessels. This measure aims to improve domestic fuel distribution and further alleviate supply worries [1]. Additionally, crude exports from Iraq’s Kirkuk fields to Turkey’s Ceyhan port resumed via pipeline after an agreement between Baghdad and the Kurdistan Regional Government, adding to the positive supply developments earlier in the week [1].
Despite these supply-side improvements, geopolitical risk premiums remain elevated. Recent attacks on key energy infrastructure in the Middle East have heightened fears of disruptions to global oil and gas supplies. Iran launched missile strikes on a Qatari site hosting the world’s largest LNG export facility, following an Israeli attack on Iran’s South Pars gas field. US President Donald Trump stated he had prior knowledge of the Israeli strike but urged restraint against further attacks on Iranian energy assets [1]. Saudi Arabia reported thwarting an attempted attack on a gas facility, with four residents injured by falling shrapnel in Riyadh. Missiles intercepted in the UAE were reportedly targeting a gas facility and an oil field, underscoring the widening regional risks to energy infrastructure [1].
The combination of eased supply concerns from Venezuela and Iraq, alongside heightened geopolitical risks in the Middle East, has kept WTI prices near $98, with market participants closely monitoring developments for potential price volatility [1].
CONCLUSION
WTI oil prices remain near $98 per barrel as the US eases sanctions on Venezuela and supply resumes from Iraq, helping to offset some supply concerns. However, elevated geopolitical risks in the Middle East continue to pose threats to global energy infrastructure, maintaining a high risk premium in the market. Investors are likely to remain cautious amid ongoing regional tensions and shifting supply dynamics.