[NEW DELHI] Oil prices were up slightly on Monday, after the previous session’s rise, as Iran’s deadly crackdown on protests quelled civil unrest, narrowing chances for a US attack on the major Middle Eastern producer that could disrupt supplies.
Brent crude was trading at US$64.19 a barrel by 0327 GMT, up 6 cents or 0.09 per cent.
US West Texas Intermediate for February rose 9 cents, or 0.15 per cent, to US$59.53 a barrel. That contract expires on Tuesday and the more active March contract was at US$59.39, up 5 cents, or 0.08 per cent.
Iran’s violent crackdown on protests spurred by economic hardship, which officials say killed 5,000 people, quelled the unrest.
US President Donald Trump seemed to step back from his earlier threats of intervention, saying on social media Iran had called off mass hangings of protesters, although the country had not announced any such plans.
That appeared to lower the odds of a US intervention that could have disrupted oil flows from the fourth-largest producer among the Organization of the Petroleum Exporting Countries.
The downturn signalled a renewed retreat from multi-month highs reached last week, although prices still settled higher on Friday. The US military move to the Gulf underscores continued concern, however.
“The pullback followed a swift unwind of the ‘Iran premium’ that had driven prices to 12-week highs, triggered by signs of easing in Iran’s crackdown on protesters,” IG market analyst Tony Sycamore said in a note.
That was accentuated by US inventory data showing a substantial crude build and reinforcing bearish supply pressures, he added.
US markets are closed on Monday for Martin Luther King Jr. Day.
Crude stocks were up by 3.4 million barrels in the week ended Jan 9, the EIA said last week, versus analysts’ expectations in a Reuters poll for a 1.7 million-barrel draw.
Markets are closely watching plans for Venezuela’s oil fields, after Trump said the United States would run its oil industry after the capture of Nicolas Maduro.
The United States is moving as fast as possible to grant Chevron an expanded production licence in the country, the US energy secretary told Reuters on Friday.
But markets were less confident about the prospects for scaled-up Venezuelan production.
“Venezuela and Ukraine remain on the back burner,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
“Expect rangebound movement for the rest of the day, with US markets closed.”
China’s refinery throughput in 2025 rose 4.1 per cent year on year, while crude oil output grew 1.5 per cent from 2024, with both reaching all-time highs, government data showed on Monday. REUTERS
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