Calm trend in oil

Oil prices settled after a weekly gain as geopolitical risks in Russia and the Middle East returned to the forefront following the weekend attacks. Brent futures traded around $84 a barrel after posting their first weekly gain this month, while U.S. crude was below $80. Ukraine continued drone attacks on Russian refineries on Sunday, while an oil tanker bound for China was hit by a Houthi missile in the Red Sea on Saturday. In Iran, state television reported that there were “no signs of life” at the scene of the crash of a helicopter carrying Iranian President Ebrahim Raisi. Supreme Leader Ayatollah Ali Khamenei said there would be “no disruption to the country’s affairs” as a result of the incident. “The market has become increasingly responsive to geopolitical developments and OPEC’s large reserve production is likely to contribute to this,” said Warren Patterson, head of commodity strategy at ING Group in Singapore. “We may have to wait for more clarity from OPEC+ on production policy to move out of that range.” Global benchmark Brent is about 9% higher this year due to OPEC+ supply cuts, but prices have fallen since mid-April as geopolitical tensions eased. Market watchers are turning their attention to the producer group’s meeting on June 1 but largely expect the current restrictions to be lifted.