US Tensions and Supply Recovery Keep Oil Prices in Check
Oil prices remained relatively stable on Friday as market participants weighed the possibility of renewed US-Iran tensions against signs of recovering Middle Eastern supplies.
Brent crude dipped 3 cents to $102.28 a barrel, while West Texas Intermediate eased 19 cents to $92.68 a barrel.
The market is taking stock of mixed signals this week, according to KCM Trade chief analyst Tim Waterer, who noted that traders were 'simply taking a breather' after a disruptive Thursday session.
However, the US is sending another aircraft carrier and up to 10,000 troops to the Middle East, which has raised concerns about potential supply disruptions.
Priyanka Sachdeva, head of market insights at Phillip Nova, said that the $100/barrel-level has become a psychological and market-positioning threshold, with the market increasingly pricing a world where supply chains remain vulnerable for longer.