Oil Prices Steady, Driven by US Economic Data and Venezuelan Supply Risks
Oil prices held steady in Asian trading on Wednesday (December 23rd) after posting five consecutive sessions of gains, supported by US-Venezuela tensions and strong US economic growth data. Brent prices rose 0.1% to $62.42 per barrel, while WTI also gained 0.1% to $58.42 per barrel.
Geopolitics remains a key driver of oil prices, with tensions between Washington and Caracas rekindling concerns about disruptions to Venezuelan oil exports. The US has tightened enforcement against vessels connected to Venezuelan oil shipments, potentially restricting supply flows from the OPEC member.
Although Venezuela's output is relatively small compared to other major oil-producing countries, these supply disruptions heighten the geopolitical risks looming over the global oil market, which is already sensitive to international tensions. Price gains were also supported by US economic data showing annual GDP growth of 4.3% in the third quarter, indicating resilience in consumer spending and business activity.
However, trading volumes remained light due to the holidays affecting markets in the US and much of Europe, which are operating on limited schedules. US financial markets will close early on Wednesday for Christmas Day, while many Asian countries also experienced reduced participation due to the year-end holidays.
On the supply side, data from the American Petroleum Institute (API) showed that US crude oil inventories rose by 2.4 million barrels in the week ending December 19, contrary to expectations for a decrease. This indicates an unexpected increase in supply, easing existing market tensions.
Traders now await the official report from the US Energy Information Administration (EIA) scheduled for release to confirm the data, which will provide a clearer picture of refinery activity, fuel demand, and overall supply conditions. (asd)
Source: Newsmaker.id
