Quick overview

---

Oil prices saw an increase as traders balanced concerns about a potential glut against geopolitical tensions ranging from Venezuela to Russia and Iran.

West Texas Intermediate was above $58, while Brent, which had increased by 2.1 percent on Monday, remained close to $62 per barrel. Due to a partial US blockade that has hindered exports and caused local storage tanks to fill up, Venezuela has begun to close wells in an area that contains the world’s largest deposits.

 

President Donald Trump claimed that the US had attacked a drug facility within the nation. That occurred as Russian President Vladimir Putin announced he would change his negotiating stance following purported drone attacks on his home, posing new challenges to Trump’s efforts to put an end to the conflict in Ukraine.

The US president, meanwhile, threatened to attack Iran once more if it rebuilt its nuclear program. Concerns that global production will surpass demand after OPEC+ increased output in an effort to regain market share have kept crude on track for a sharp yearly decline. According to Vortexa Ltd., the quantity of oil stored globally on tankers that have been motionless for at least seven days increased by 15% last week, indicating an abundance of supplies. As a result, the total reached its highest point since 2020 in November of last year.

“Geopolitical disruptions have largely diluted, if not overshadowed, the issue of oversupply in the market,” stated Gao Jian, an analyst at Qisheng Futures Co. based in Shandong. “Unless these disputes are resolved, volatility and price support will persist,” he continued, adding that a deepening glut would probably cause the overall market bias to shift lower.

According to US government data, the crucial Cushing, Oklahoma hub saw the largest weekly increase in crude stockpiles since late October during the period ending December 19