Oil Prices Steady After Five-Day Rally on U.S. Data and Geopolitical Tensions

PUKMEDIA

Oil prices.

Oil prices were little changed on Wednesday following a five-day rally, underpinned by strong U.S. economic data and concerns over potential supply disruptions from Venezuela and Russia.

Brent crude futures edged down by 1 cent to $62.37 per barrel by 03:26 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 1 cent to $58.39 a barrel.

Both benchmarks have gained approximately 6 per cent since 16 December, when prices fell to near five-year lows.

Recent data showed that the U.S. economy, the world’s largest, expanded at its fastest pace in two years during the third quarter, driven by robust consumer spending and a sharp recovery in exports.

According to market sources citing figures from the American Petroleum Institute (API), U.S. crude oil inventories rose by 2.39 million barrels last week. Gasoline stocks increased by 1.09 million barrels, while distillate inventories climbed by 685,000 barrels.

The U.S. Energy Information Administration (EIA) is scheduled to release its official inventory data on Monday, later than usual due to the Christmas holiday.

On the supply side, disruptions to Venezuelan oil exports have been the most significant factor supporting prices. Continued attacks on energy infrastructure by Russia and Ukraine have also contributed to market strength, according to a report from Haitong Futures.

More than a dozen fully loaded vessels are currently waiting off Venezuela’s coast for new instructions after the United States seized the supertanker Skipper earlier this month and imposed sanctions on two additional vessels over the weekend.

Last week, U.S. President Donald Trump announced a “blockade” on all sanctioned vessels entering or leaving Venezuela, a move aimed at increasing pressure on Venezuelan President Nicolás Maduro.

Despite recent gains, oil prices remain on course for another quarterly decline, weighed down by forecasts of a global supply surplus.

Source: Reuters



PUKMEDIA