Oil Slips as Supply Glut Offsets Gulf Tensions

Core Viewpoint - Oil prices are experiencing slight declines while geopolitical tensions in the Middle East contribute to market volatility [1][2] Group 1: Oil Price Movement - Brent crude oil is down 0.4% at $60.60 per barrel [1] - WTI crude oil is down 0.54% at $57.16 per barrel [1] - Oil prices are holding around three-month averages despite recent fluctuations [1] Group 2: Geopolitical Risks - Escalating tensions between Saudi Arabia and the United Arab Emirates are increasing the geopolitical risk premium in the oil market [1] - The conflict involves clashes between the states' respective proxies in Yemen [1] Group 3: Supply and Demand Dynamics - A recent dispute over a strike on a Yemeni port, crucial for oil supply, has contributed to market instability [2] - Supply gluts have led to the sharpest annual loss in oil prices since 2020, with Brent crude falling 18% [2]