Market News

BY Salma El Wardany and Mitchell Ferman

Bloomberg) -- Thin volume on Christmas Eve left oil markets little changed as traders continued to weigh this year’s twin forces of escalating geopolitical tensions and the expected global supply overhang.

West Texas Intermediate futures edged down 3 cents to settle near $58 a barrel, narrowly snapping a five-day winning streak. Investors continue to watch for signs of supply interruptions out of Venezuela as the Trump administration ramps up pressure on the nation.

The US was still in pursuit of a third oil tanker off the coast of Venezuela, though nearly half a dozen tankers laden with crude have departed from the South American nation’s coast since Washington intensified efforts to curb oil revenues that help sustain Nicolás Maduro’s regime.

The turmoil in the Caribbean is the “focal point going into the holiday weekend,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc. “While the the blockade and sanctions are not decreasing world supplies, they may be delaying them, lending a bullish tilt to prices.”

WTI, the US benchmark, is still on track for its biggest annual decline since 2020, with virtually all of the world’s major oil traders foreseeing a glut next year after producers in and outside OPEC+ increased supplies. But concerns about disruptions — especially from OPEC+ members Russia and Venezuela — have helped keep a floor under prices.

Russian crude is building up at sea, with the volume jumping 48% since the end of August. The US actions against 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 storage of gasoline and distillate both rising. Official data is set to be released on Dec. 29, on delay. Trading ceased early on Wednesday and markets will be closed on Thursday for Christmas.

--With assistance from Charlie Zhu, Sarah Chen, Yongchang Chin and Mia Gindis.