Oil Holds Gain on Sanctions Talk as IEA Sticks to Bearish View
(Bloomberg) -- Oil crept higher for a fourth day following threats of tighter curbs on Russian and Iranian flows, though the International Energy Agency renewed a supply glut warning that has kept prices within a narrow range.
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Brent traded near $74 a barrel after rising more than 3% over three sessions. US Treasury Secretary Janet Yellen said low oil prices might allow further action against Russia, while Donald Trump’s pick for national security adviser said the incoming administration would apply maximum pressure on Iran.
Still, global oil markets are set to face a glut next year, in spite of OPEC+’s decision to delay output increases, the IEA said Thursday. The prediction runs counter to the outlook from the US Energy Information Administration, which this week said it broadly sees markets in balance next year.
Oil prices have been stuck in a band of about $6 since the middle of October, buffeted by wider geopolitical risks, the outlook for consumption into next year and the potential impact of a Trump presidency on the market from January.
“While we have seen some strength in oil in recent days, we are still stuck in a fairly narrow range,” said Warren Patterson, head of commodities strategy at ING Groep NV. “Range-bound trading, and low volatility, is no surprise given expectations for a comfortable oil balance through 2025.”
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