Investors are now paying close attention to rising tensions in the Middle East after the US-Iran nuclear talks failed several times. In recent days, traders have been buying more “call options” on Brent crude oil in anticipation of further gains, according to Saxo Bank. Oil prices were supported by reports that crude oil inventories in major oil-producing countries were falling and exports were within limits.
Markets are also weighing the impact of increased supply, with expectations that OPEC+ will increase production from April. JPMorgan analysts said that the oil oversupply seen in the second half of 2025 continued into January and is likely to continue. They said that production cuts of 2 million barrels per day may be needed to avoid excess inventories in 2027.
