Oil prices stabilized as investors weighed the resumption of operations at a key Black Sea export terminal against monitoring risks to Iranian production after US President Donald Trump renewed his threats to Tehran.
Brent crude traded below $66 a barrel after jumping 2.8% on Friday, its biggest daily gain in two weeks. West Texas Intermediate crude also held steady near $61.
The Caspian Pipeline Union said it had brought an offshore mooring point back into service, enabling crude flows through a route that accounts for most of Kazakhstan's exports.
Iran's risks and upward bets
However, Trump's renewed focus on Iran has added a risk premium to prices. The US president has sent naval assets to the Middle East, fueling speculation that he may follow through on his threats to attack the Iranian regime.
Concerns about Iran and disruption at the Caspian Pipeline Union terminal led hedge funds to increase their bullish bets on crude to the highest level since August during the week ending January 20.
Futures contracts have risen at the start of the year, despite expectations of a supply glut as OPEC+ and other producers continue to pump more oil.
Separately, traders are monitoring the impact of a winter storm sweeping across the United States on energy facilities. Exxon Mobil shut down some of its units at a refinery complex in Baytown, Texas, due to the freezing weather, while natural gas futures jumped as heating demand surged.
