Key Moments
- Brent crude futures settled at $68.67 per barrel after a $1.34 gain, according to UOB’s Global Economics & Markets Research Team.
- NY WTI futures advanced by $1.93 to close at $65.14 per barrel amid heightened US-Iran tensions.
- The EIA reported a 3.46 million-barrel decline in US crude inventories last week, with Lower 48 production at its lowest level since Nov 2024 due to freezing conditions.
Geopolitical Risks Drive Fresh Upside in Oil
Crude benchmarks extended their advance as escalating tensions between the United States and Iran underpinned prices. Market participants reacted to reports that US President Trump has issued renewed warnings to Iran while American military forces are concentrating in the region.
UOB’s Global Economics & Markets Research Team noted that London Brent oil futures added $1.34 to finish at $68.67 per barrel, while NY WTI gained $1.93 to close at $65.14 per barrel.
Market Reaction to US-Iran Developments
Geopolitical headlines remained the primary catalyst for the move higher in crude.
“Crude oil prices rose further on Wed, as conflicting reports stoked concerns about US-Iran tensions.”
“US President Trump renewed warnings to Iran’s leaders as US military forces gather in the region, even as diplomacy appeared to be on track, with Tehran confirming nuclear talks with the US will take place in Oman on Fri (6 Feb).”
Inventory Draw and Weather-Related Supply Disruptions
Fundamental data from the United States added further support to the bullish tone in the oil market.
“Meanwhile, EIA reported that US crude inventories fell by 3.46 million barrels last week while output in the Lower 48 dropped to the lowest since Nov 2024 as freezing temperatures disrupted drilling.”
| Contract | Price Move | Settlement Price (per barrel) |
|---|---|---|
| London Brent oil futures | +$1.34 | $68.67 |
| NY WTI | +$1.93 | $65.14 |
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