Oil Moves Higher as Traders Assess Iran Risks, Venezuela Outlook

Group 1: Oil Price Movements - West Texas Intermediate (WTI) rose 3.2% to settle below $58 a barrel, with prices continuing to climb after settlement, indicating a potential recovery from earlier losses [1] - An annual period of commodity index rebalancing is expected to lead to increased cash flow into crude oil over the next few days, contributing to bullish momentum [2] - Call skews for Brent have strengthened as traders engage in the options market to hedge against price fluctuations [2] Group 2: Geopolitical Risks and US Actions - President Donald Trump threatened to impose severe measures on Iran if the government continues to suppress protests, which could disrupt Iranian oil supply and impact market expectations of a surplus [1] - The US plans to exert control over Venezuela's oil industry, with Energy Secretary Chris Wright stating that the US will initially offer stored crude for sale [3] - Venezuela's state-owned Petroleos de Venezuela SA is negotiating with Washington to sell crude under a framework similar to that of Chevron, the only supermajor operating in the country [4] Group 3: Market Dynamics and Company Activities - Citgo Petroleum Corp., indirectly owned by Venezuela, is considering resuming crude purchases for the first time since sanctions were imposed in 2019, while Trafigura Group has also shown interest [5] - Chevron is in discussions to extend its operating license in Venezuela, and Vitol Group has reportedly received a preliminary US license for oil negotiations [5] - Amrita Sen from Energy Aspects noted that the main impact of the situation in Venezuela will be a shift in trade flows, with more oil directed to the US at the expense of China, but not necessarily a significant increase in Venezuelan production [4]