Meanwhile, Russian crude is building up at sea, with the volume jumping 48% since the end of August. The US actions in Venezuela may be raising concerns among shippers and buyers of Russian barrels, who worry their cargoes could also be targeted.
In the US, an industry report showed crude stockpiles increased by 2.4 million barrels last week, with holdings of gasoline and distillate both rising. Official data is set to be released on Dec 29, rather than Wednesday (Dec 24) as originally planned, after US President Donald Trump declared a federal holiday.
Brent has lost about 16% this year and is on track for its biggest annual decline since 2020 as supply is expected to outpace demand — leading to forecasts for the biggest glut since the Covid-19 pandemic. However, concerns about disruptions to supply — especially from Opec+ members Russia and Venezuela — have helped keep a floor under prices.
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Trading will end early on Wednesday and markets will be closed on Thursday. Volumes were below usual levels in Asian hours.
“Geopolitical premiums have yet to be digested with pretty much all the bullish factors laid out on the table,” said Gao Jian, a Shandong-based analyst at Qisheng Futures Co, referring to a flurry of tensions from Venezuela to Russia. Still, the upside could be limited as the glut is expected to intensify early next year, he added.
Prices:
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- Brent for February settlement was little changed at US$62.33 a barrel at 9.53am in Singapore.
- WTI for February delivery was stable at US$58.37 a barrel.
Uploaded by Arion Yeow
