Oil prices settled marginally lower, as investors weighed strong U.S. economic growth against persistent supply risks from Venezuela and Russia. Brent crude slipped 14 cents, or 0.2%, to $62.24 a barrel, while WTI eased 3 cents, or 0.1%, to $58.29. Despite the pullback, both contracts have rebounded roughly 6% since mid-December following a sharp selloff.
Support has come from position-squaring in thin holiday trading, robust U.S. economic data and heightened geopolitical tensions, including Washington’s blockade of sanctioned Venezuelan oil shipments. U.S. data showed the economy expanded at its fastest pace in two years during the third quarter, driven by strong consumer spending and a rebound in exports. Even so, Brent and WTI remain on track for annual declines of roughly 16% and 18%, respectively, their steepest since 2020, as global supply is expected to outpace demand next year.
On the supply side, disruptions tied to Venezuela have been the most immediate source of upward pressure, with more than a dozen tankers idling offshore after U.S. enforcement actions earlier this month. Ongoing Russian and Ukrainian attacks on energy infrastructure have also lent support, while Kazakhstan’s oil exports via the Caspian Pipeline Consortium are expected to fall sharply in December following damage to export facilities. Meanwhile, U.S. inventory data added a bearish undertone, with industry figures showing builds in crude, gasoline and distillate stocks ahead of delayed official data from the Energy Information Administration.