Oil Holds in Tight Range as Geopolitics Meet Supply Signals

Overview

• Brent for February settled essentially flat near $62 and WTI hovered around $58 after early gains faded on a reported 400,000‑barrel U.S. crude inventory increase.
• Traders kept a risk premium in place as tensions in Yemen persisted, with the Saudi‑led coalition warning it would counter destabilizing moves in Hadramout.
• Russia accused Ukraine of a drone strike on a northern presidential residence, a claim Kyiv rejected, adding uncertainty around talks that could influence sanctions and oil flows.
• Multiple Asian refinery sources told Reuters they expect Saudi Arabia to cut February Arab Light prices to Asia for a third month, citing ample supply in the spot market.
• For the year, Brent is down about 17% and WTI nearly 19%, reflecting concerns over abundant supply despite recurring geopolitical flare‑ups.