Feb 7, 2022 - Energy & Environment
Oil markets await data and Iran talks amid price surge
- Ben Geman, author of Axios Generate
Illustration: Aïda Amer/Axios
Crude oil prices have eased off fresh seven-year highs reached earlier Monday morning, but it could be another wild week.
What we're watching: Supply and demand data, negotiations with Iran, and the state of Russia's potential invasion of Ukraine.
- The International Energy Agency's monthly outlook arrives Friday. OPEC's latest monthly report comes Thursday, while the U.S. Energy Information Administration's monthly pulse-taking comes tomorrow.
- Meanwhile, traders will also be watching for signs of revival of a nuclear agreement with Iran in multilateral talks in Vienna this week.
What they're saying: Via S&P Global Platts...
"The negotiations have been the top oil supply risk for 2022, with an interim deal potentially increasing exports by 700,000 b/d while a breakdown in talks could spike geopolitical tensions and global oil prices, according to S&P Global Platts Analytics."
Why it matters: Oil's upward march has political ramifications for the White House and Democrats' fortunes in the midterm elections.
- U.S. gasoline prices, which move largely in tandem with crude, are also at seven-year highs.
Where it stands: The global benchmark Brent crude is trading in the high-$92 per barrel range.