Oil prices rise amid Ukraine talks, Venezuela tensions
Oil prices climbed as investors assessed the prospects of a ceasefire in Ukraine alongside escalating tensions between the US and Venezuela.
Brent crude traded around $63 per barrel, up 0.4% from Wednesday, while West Texas Intermediate hovered above $59. US President Donald Trump described a meeting between his envoy and President Vladimir Putin as “reasonably good” but noted that the outcome for a peace deal remained uncertain, News.Az reports, citing Bloomberg.
Meanwhile, Trump reiterated that the US plans to begin targeting drug cartels on land in Venezuela soon. The buildup of American forces in the region has added a risk premium to oil prices, partially offsetting concerns over a projected global surplus expected to reach record levels next year.
The “Venezuela situation warrants caution” by the market, said Gao Jian, a Shandong-based analyst at Qisheng Futures Co. However, supply fundamentals continue to exert “bearish pressure on crude oil,” he added.
Oil is on track for an annual loss as OPEC+ brings back idled output and other producers boost supply. Earlier this year, Chinese buying helped to prop up the market, but Hengli Petrochemical International Pte. Chief Executive Officer Janet Hong sees the nation’s demand subdued until at least mid-2026.
“No matter how much demand is going to come in, you just have a lot of supply,” Trafigura Group’s Chief Economist Saad Rahim said at the Financial Times Commodities Asia Summit in Singapore on Wednesday. “The path of least resistance for prices is likely down.”
US crude inventories expanded by 574,000 barrels last week, according to government data on Wednesday. Gasoline and distillate stockpiles also gained.
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