Oil Gains as Traders Take Stock of Iran Tensions and Inventories

76, owned by Phillips 66, storage tanks at the Port of Richmond in Richmond, California, US, on Friday, Jan. 3, 2025. Oil began 2025 by rising to the highest level since November, boosted by a report of shrinking crude stockpiles in the US and bullish technical indicators. Photo by David Paul Morris /BloombergArticle content(Bloomberg) — Oil climbed for a second day as traders focused on tensions between the US and Iran that have overshadowed signs of swelling supplies.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBrent rose toward $70 a barrel, after gaining almost 1% on Wednesday, with West Texas Intermediate near $65. While US President Donald Trump signaled his goal was to reach a nuclear deal with Tehran — commenting after talks with Israeli Prime Minister Benjamin Netanyahu — traders remain concerned about the potential for military strikes and risks to supply.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentCrude has gained every week this year, with a single exception, as geopolitical risks drove futures higher. The US intervened in Venezuela in January, then pivoted to Iran after a wave of protests challenged the Islamic Republic’s leadership. Still, banks maintain there’s abundant supply, with Goldman Sachs Group Inc. saying that the surplus was appearing, but it was mainly doing so in locations that are less significant for price-setting.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentUS crude inventories jumped 8.5 million barrels last week to the highest since June, according to the Energy Information Administration. Later Thursday, the International Energy Agency, the Paris-based adviser to major economies, is due to issue its monthly outlook that may again flag a glut.Article contentAs the US-Iranian tensions play out, Washington has positioned a naval force in the region. After meeting Netanyahu, Trump said a deal with Tehran was his preference, according to a social-media post. But if that didn’t happen, “we will just have to see what the outcome will be,” Trump said.Article contentPrices are likely to stay rangebound, with pullback from any diplomatic progress to be limited given the major political hurdles to any durable deal, said Vandana Hari, founder of Vanda Insights. “Additional adversarial rhetoric or military posturing may add incremental risk premium, but gains are likely to be capped unless US strikes on Iran appear imminent,” she said.Article contentFlows from Venezuela were also in focus. China has bought some Venezuelan oil that was purchased earlier by the US, Energy Secretary Chris Wright said at a roundtable with the media in Caracas, without giving details.

The Latin American country’s so-called oil quarantine was essentially over, he added.Article contentBrent’s prompt spread — the difference between its first two contracts — remains in backwardation, suggesting near-term conditions remain relatively tight. The widely-watched metric was 69 cents a barrel in the bullish structure, little changed from a gap of 65 cents a month ago.Article contentTrending BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Bank of Canada says next rate move 'unusually difficult' to predict amid trade and geopolitical tensions Economy Turning self-employed Canadians into employers could add $24 billion to GDP, new report says Entrepreneur Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Bank of Canada says next rate move 'unusually difficult' to predict amid trade and geopolitical tensions Economy Turning self-employed Canadians into employers could add $24 billion to GDP, new report says Entrepreneur