Oil prices stabilized on Monday, trading near $84 a barrel for Brent crude and above $80 for West Texas Intermediate (WTI), as geopolitical risks in Russia and the Middle East intensified.
Gatekeepers News reports that the price stability follows a series of weekend attacks, including Ukraine’s drone strikes on Russian refineries and a missile attack on a China-bound oil tanker in the Red Sea by Houthi rebels.
Despite these tensions, the market has become desensitized to geopolitical developments, according to Warren Patterson, head of commodities strategy for ING Groep NV in Singapore. “We may have to wait for further clarity from OPEC+ on its output policy to break out of the range,” he said.
Brent crude has risen approximately 9% this year, largely due to OPEC+ supply cuts. However, prices have softened since mid-April as earlier geopolitical tensions eased.
The upcoming OPEC+ meeting on June 1 is now a focal point for market participants, with expectations leaning towards continued production curbs.
Hedge funds and money managers have reduced their net long positions on Brent crude for the second consecutive week, reflecting a cautious market sentiment.
