Oil energy continues to show strong price stability this week, illustrating a delicate balance between geopolitical and economic factors. Despite optimism around trade agreements between the United States, Japan, and the European Union, prospects of a global supply increase are restraining any significant price rise.
In particular, Chevron’s authorization to resume operations in Venezuela could inject around 200,000 barrels per day into the market, increasing supply pressure. Thus, Brent crude prices remain between $68 and $69.7 per barrel, standing at $69.40 at the time of this report, while U.S. WTI trades around $66.20.
Recent Developments:
• Marked stability in Brent and WTI prices, with very limited weekly fluctuations.
• Trade optimism linked to negotiations between the U.S., Japan, and the EU.
• Potential significant return of Venezuelan supply, with Chevron’s resumption of activities in Venezuela.
Analyst Recommendations:
• Analysts advise increased caution, highlighting that the current balance is fragile and sensitive to any changes in trade talks or Venezuelan production developments.
• They believe prices could remain within a narrow range in the short term until clearer signals emerge on the evolution of global supply and demand.