USO•Barclays sees near-term risks to oil prices skewed higher and maintained its oil price forecasts. It cited ongoing US-Iran tensions, volatile Middle East oil flows, recovering demand and subdued positioning.
Barclays said an imminent diplomatic deal between the US and Iran seems unlikely, and that the market is not positioned for a continuation of the status quo. It maintained its view that market participants seem too sanguine about the balance of near-term oil price risks, while keeping its price forecasts unchanged.
Oil prices edged down on Friday and were headed for a second weekly decline as easing fears of renewed direct conflict weighed on prices, though shipping attacks remained a supply risk.
