Crude oil prices were little changed during Monday's Asian trade as a violent crackdown on protests in Iran appeared to quell civil unrest and lowered the perceived risk of a United States military intervention that could disrupt supplies from the major Middle Eastern producer.
By 2:55 pm AEDT (3:55 am GMT), Brent crude was trading up 11 cents or 0.2% to US$64.24 per barrel, while U.S. West Texas Intermediate crude for March delivery gained 9 cents or 0.2% to $59.43 per barrel.
Iran’s crackdown on protests driven by economic hardship, which officials said killed 5,000 people, appeared to calm unrest. U.S. President Donald Trump also stepped back from earlier threats of intervention, saying on social media that Iran had called off mass hangings of protesters, although Tehran had not announced any such plans.
The shift reduced the likelihood of a U.S. intervention that could disrupt oil flows from Iran, the fourth-largest producer in the Organization of the Petroleum Exporting Countries.
ANZ analysts commented in a note to clients: “The U.S. continues to boost its military presence in the Middle East. At least one aircraft carrier is moving to the region.
"The U.S. Treasury department announced sanctions on Iran’s Secretary of the Supreme National Security Council and 18 individuals and entities of what it says is a shadow bank network.
"Elsewhere, U.S. forces seized another oil tanker near Venezuela, as part of a quarantine on the sale of sanctioned oil.”
Among data releases, U.S. crude inventories rose by 3.4 million barrels in the week ended 9 January, the Energy Information Administration said last week, compared with expectations for a 2.2 million-barrel draw.
