The search for balance in oil

Oil was flat as markets awaited a U.S. response to an attack on U.S. troops in Jordan that risked escalating tensions. Oil was flat as markets awaited a U.S. response to an attack on U.S. troops in Jordan that risked escalating tensions in a region that is key to global crude production. Brent crude traded above $82 a barrel after losing 1.4% on Monday despite a drone attack on U.S. troops that Iran has been trying to avoid. Data showing that OPEC+ is making a slow start on new production cuts has been weighing down prices. U.S. crude has steadied. The White House is seeking a tough enough response to deter Iran and its proxies without leading to outright war with Tehran, officials and experts say. President Joe Biden’s challenge is to show resilience in an election year without sending oil prices soaring. Oil is on track for a monthly gain after Yemen-based Houthi rebels escalated their hostilities against commercial shipping in the Red Sea, including an attack on a fuel tanker on Friday. Still, concerns about strong supply and demand from non-OPEC producers weighed on the outlook. Biden faces pressure from some Republicans to strike Iran directly, but the most likely scenario is targeting Iranian assets abroad. U.S. National Security Council spokesman John Kirby said the president met with his national security team on both Sunday and Monday and is “evaluating the options available to him.”