Oil holds near $70 as Middle East risk premium fades, Abu Dhabi's Murban defies the trend

Oil prices were little changed in Asian trading on Monday, with global benchmark Brent crude hovering below $72 a barrel and US West Texas Intermediate (WTI) remaining under $69, as traders weighed easing geopolitical tensions against expectations of resilient summer fuel demand.

Based on market data at about 11:37 am Monday (July 6) in Tokyo (JST), WTI crude traded at $68.68 per barrel, down 1 cent (-0.01%), while Brent crude slipped 15 cents (-0.21%) to $71.97, as per OilPrice.com

The standout performer was Murban crude, Abu Dhabi's flagship export grade, which climbed 1.93% to $66.48, outperforming other major benchmarks.

Meanwhile, natural gas futures fell 0.94% to 3.166.

Middle East fears ease

The muted moves reflect a market that has largely priced out the sharp geopolitical risk premium that briefly pushed oil prices higher following last month's US-Israeli strikes on Iran and renewed concerns over shipping through the Strait of Hormuz.

Although tensions remain elevated across the region, oil exports from the Gulf have continued without major disruptions, easing fears of an immediate supply shock.

OPEC+ also remains on course with its gradual production strategy, while traders continue monitoring compliance among member countries.

Murban bucks the trend

Murban's nearly 2% gain highlights continued demand for medium-light crude grades favored by Asian refiners.

The benchmark has become increasingly important since its futures contract launched in Abu Dhabi, providing Asian buyers with an alternative regional pricing reference.

Analysts say physical demand from refiners preparing for peak summer consumption has supported Murban even as broader futures markets remain range-bound.

Markets await fresh catalysts

Investors are now looking ahead to:

• Updated US inventory data later this week

• Signals from OPEC+ regarding future production increases

• Economic data from China and the United States for clues on oil demand;

• Any renewed geopolitical developments in the Middle East that could affect shipping or production.

Despite recent volatility, Brent has settled back into the low-$70 range as traders balance healthy seasonal demand with ample global supplies.