Global oil prices continued to make gains during trading on Monday, supported by increasing geopolitical concerns resulting from ongoing tensions between the United States and Iran, which kept markets in a state of caution and anticipation, despite the return of one of the most important oil export pipelines in Kazakhstan to full operation.
Brent crude futures rose 0.18% to $66 a barrel , while U.S. West Texas Intermediate crude climbed 0.16% to $61.17 a barrel .
Both crude oil benchmarks ended last week with strong gains of around 2.7% , hitting their highest levels since mid-January, amid expectations that a U.S. aircraft carrier strike group and additional military assets would arrive in the Middle East in the coming days.
Tensions escalated following statements by US President Donald Trump, in which he indicated the movement of a military fleet towards Iran, while expressing his hope that it would not be used, and demanding that Tehran not escalate the situation internally or restart its nuclear program.
In response, Iran asserted that any potential attack would be met with a comprehensive response, reinforcing fears of disruption to energy supplies in a region that is one of the world's most important oil transit routes, which added a clear risk premium to crude prices.
Despite the geopolitical pressures, markets received some support from the Caspian Pipeline Association's announcement that loading operations at the Black Sea terminal had returned to full capacity after maintenance work was completed, which partly helped to ease concerns about supplies.
In the United States, the severe winter storm contributed to a decline in oil and natural gas production, with estimates of a drop in production of about 250,000 barrels per day , which supported spot energy prices and reinforced the upward trend in the oil market.
Analysts believe that continued geopolitical tensions, along with weather disturbances and their impact on production, may keep oil prices supported in the coming period, especially if risks escalate in the Middle East region.
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