Oil Maintains Gains for 5 Days Amid Focus on Tensions and Inventories

SadaNews - Oil prices have maintained their gains for the fifth consecutive day, as traders compared escalating geopolitical tensions with rising inventories.

Brent crude traded near $62 a barrel after rising nearly 6% over the previous five sessions, while West Texas Intermediate surpassed $58. Washington is still seeking to recover a third oil tanker off the coast of Venezuela, amid the White House increasing its pressure on the government of Nicolas Maduro.

Meanwhile, the volume of Russian crude oil is accumulating at sea, having surged by 48% since the end of August. U.S. moves in Venezuela may raise concerns among shipping companies and buyers of Russian oil, who fear their shipments may also be targeted.

Increase in U.S. Oil Inventories

In the United States, a report showed that crude oil inventories rose by 2.4 million barrels last week, along with increases in gasoline and distillate stocks. Official data is scheduled to be released on December 29, instead of Wednesday as initially planned, after U.S. President Donald Trump declared a public holiday.

Brent crude has lost about 16% this year, heading towards recording its largest annual decline since 2020, as supply is expected to outstrip demand, resulting in predictions of the largest surplus since the "COVID-19" pandemic. However, concerns about supply disruptions, especially from Russia and Venezuela, members of the "OPEC+" alliance, have helped stabilize prices.

Trading will end early on Wednesday, and markets will be closed on Thursday. Trading volumes were lower than usual during Asian trading hours.

Gao Jian, an analyst at the Shandong-based Chiqing Futures Company, pointed to escalating tensions from Venezuela to Russia, stating: "Geopolitical premiums have not yet been absorbed, with almost all positive factors in place." He added that potential gains may be limited as the surplus is expected to increase early next year.