Oil Eases Near $64 as Geopolitics Support Prices: Prices Dip After Strong Run

Oil prices slipped slightly in early trading, with US crude hovering near $64 a barrel after several days of gains. Despite the modest decline, prices remain firmly higher over the month, reflecting strong underlying support.

Middle East Tensions Keep Risk Premium Alive

Heightened tensions between the United States and Iran continue to influence oil markets. Sharp rhetoric and warnings of retaliation have increased concerns about regional stability, encouraging investors to factor in additional risk when pricing crude.


Key Shipping Routes Under Watch


Markets remain sensitive to developments around major oil shipping routes in the Middle East. Any disruption to these pathways could affect global supply, keeping traders cautious even as prices pull back.


Policy Moves Add Balance to the Market


On the supply side, recent US policy adjustments toward Venezuela’s oil industry have eased some pressure on the market. The changes could gradually bring more oil into circulation, helping limit sharp price spikes.


Outlook: Supportive but Volatile


Overall, oil prices continue to draw support from geopolitical uncertainty, even as short-term profit-taking leads to mild declines. With political risks and policy shifts unfolding at the same time, oil markets are likely to remain choppy in the near term.