Oil prices fluctuated in a narrow range, with fundamental conditions limiting geopolitical risk premiums

(1) Oil prices were little changed in the Asian market on Wednesday as weak demand and a rebound in supply limited the market's response to rising geopolitical risks. (2) U.S. crude oil is currently down 0.16%, trading at $74.37 per barrel, and Brent crude is currently flat at $79.10 per barrel. (3) ANZ analysts said in a client note: "Weak demand has kept oil prices in a tight range amid ongoing supply risks. ” (4) The Brent front-month contract is trading at a premium of $0.42 to the next month contract as geopolitical tensions drive near-term demand. (5) Twenty-four countries, led by the United States and the United Kingdom, launched a new round of strikes on eight targets in Yemen's Houthi-controlled areas on Monday. Britain said in a joint statement that the strike was aimed at stopping Houthi attacks on global trade. (6) But ANZ analysts said news that Libya had restarted oil exports and U.S. supplies had begun to recover from the recent cold snap had limited oil price gains. (7) Libya's 300,000 barrels per day Sharara oil field was restarted on January 21 after being suspended in early January due to protests. (8) The Pipeline Authority in North Dakota, the third-largest oil-producing state in the United States, said some oil production facilities resumed production after being shut down due to weather conditions. However, production still fell by as much as 300,000 b/d. In mid-January, its output fell by as much as 425,000 b/d due to extremely cold weather