Oil Rebounds, Global Supply Wary
World oil prices have risen again after falling to their lowest level in four and a half years. This increase occurred as investors weighed rising geopolitical risks, from Venezuela to Russia, amid the prospect of a still-tight global oil supply.
West Texas Intermediate (WTI) crude oil traded just below USD 57 per barrel after rising 1.2% on Wednesday. Meanwhile, Brent crude closed just below USD 60 per barrel. The United States is preparing to impose new sanctions on the Russian energy sector to pressure the Ukraine peace deal, and has declared a blockade on Venezuelan oil exports, fueling concerns about a global supply shortage.
US President Donald Trump has reiterated his country's desire to reclaim rights to Venezuela's oil and land. He accused the Caracas government of usurping US "energy rights." At the same time, Washington is also considering targeting a shadow fleet of Russian tankers and traders who support the country's oil exports.
These geopolitical tensions provided a short-term boost to oil prices, especially after WTI briefly fell below USD 55 per barrel earlier this week, its lowest level since February 2021. However, signs of market weakness are beginning to emerge, both in the Middle East and the US, amid concerns about oversupply next year. In the US, crude oil stocks fell moderately, while gasoline and distillate inventories actually increased. (az)
Source: Newsmaker.id
