(Dec 23): Oil steadied after a four-day run of gains as the US continued its blockade of shipments of crude from Venezuela.
Brent was near US$62 a barrel after rising about 5% over the previous four sessions while West Texas Intermediate was close to US$58. The US has taken control of two tankers and is in pursuit of a third, as Washington intensifies pressure on the government of Nicolas Maduro. Still, more than a dozen vessels have loaded oil off the coast of the South American nation since efforts to curb Caracas’ crude revenue were ramped up.
Trump said the US will keep the oil from the ships it has seized. Venezuelan exports represent less than 1% of global supply but the revenue provides a financial lifeline for Maduro’s government.
The geopolitical stresses, including the threat of US land strikes against drug operations in Latin America and rising tension in Ukraine, have helped arrest a slide in oil prices that’s been underway since mid-June. Brent is still down by 17% this year — and heading for the biggest annual drop since 2020 — as increasing supply outpaces tepid demand.
“These geopolitical risks will result in stronger fundamentals” as nations such as China stockpile more for fear of future disruptions, said Mukesh Sahdev, CEO at XAnalysts Pty Ltd. Opec is also poised to rein in output, he said.
See also: Oil steadies as global tensions help offset oversupply outlook
In the Black Sea, meanwhile, operations at one of the Caspian Pipeline Consortium’s moorings — Kazakhstan’s biggest export conduit — remain shut following drone attacks by Ukraine.
Prices:
- Brent for February settlement was steady at US$62.05 a barrel as of 10.32am in Singapore.
- WTI for February delivery slipped 0.1% to US$57.96 a barrel.
Uploaded by Arion Yeow
