Crude oil futures began the week with gains as renewed geopolitical tensions in the Middle East fueled concerns over regional stability. The front-month February 2025 ICE Brent futures were trading at $71.55 per barrel (bbl) as of 0645 GMT, up from Friday’s close of $71.12/bbl, following two consecutive weeks of losses.
Meanwhile, the January 2025 NYMEX West Texas Intermediate (WTI) futures stood at $67.63/bbl, slightly higher than Friday’s settlement of $67.20/bbl.
The surge in prices comes amid escalating unrest in Syria, where the Russian Foreign Ministry confirmed on Sunday that President Bashar al-Assad had vacated office and left the country. This follows an advance by militants from Hayat Tahrir al-Sham (HTS) and allied groups into the Syrian capital of Damascus. Although Syria has not been a significant crude oil exporter for nearly a decade, the development adds to growing security concerns in the wider region. This shift could also impact Hezbollah’s supply routes from Iran, adding further complexity to the situation.
The geopolitical unrest helped to stabilize oil markets, which had experienced a decline in the previous week despite OPEC+’s delay in its planned reduction of production cuts, now set to begin in April.
On the supply side, Saudi Arabia made headlines over the weekend by slashing its official selling price (OSP) for Arab Light crude to its lowest level in four years. While this move was largely anticipated, it came in at the lower end of market expectations, reinforcing concerns that regional oil demand remains weak.
In addition to geopolitical factors, economic developments are also influencing market sentiment. The European Central Bank (ECB) is widely expected to announce a 25-basis point interest rate cut this week, with the US Federal Reserve likely to follow suit next week. These anticipated moves suggest that central banks may continue to act aggressively to counteract economic slowdowns, adding further complexity to the outlook for global oil markets.
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