Oil prices closed modestly higher on Wednesday as optimism around tighter near-term supply offset broader macro and geopolitical concerns. Brent futures settled up 32 cents, or 0.5%, at $65.24 a barrel, while U.S. West Texas Intermediate crude rose 26 cents, or 0.4%, to $60.62.
Support continued from Kazakhstan after output was halted at the Tengiz and Korolev oilfields due to power distribution issues, following gains of roughly 1.5% in the prior session. Further supply risks emerged after oil from the Kashagan field was diverted to the domestic market for the first time because of bottlenecks at the Caspian Pipeline Consortium terminal, which was damaged in recent drone attacks. The operator of the Tengiz field has since declared force majeure on CPC deliveries, with outages potentially lasting another seven to 10 days.
Prices were also underpinned by slower-than-expected progress in restoring Venezuelan output, as exports under a flagship supply deal with the United States reached only about 7.8 million barrels, highlighting ongoing logistical and operational constraints.
On the demand side, the International Energy Agency revised its 2026 global oil demand growth forecast higher, pointing to a slightly narrower surplus outlook. However, gains were capped by rising geopolitical tensions and concerns that tariffs could weigh on economic growth, while expectations for higher U.S. crude and gasoline inventories added to caution ahead of delayed weekly stockpile data.