FX.co ★ Oil Holds Five-Day Advance

WTI crude oil futures climbed to approximately $58 per barrel on Wednesday, reflecting a sustained five-day rally and marking a two-week peak. This upward trend is attributed to mounting geopolitical tensions. The United States continues its efforts to seize another oil tanker near Venezuela, amidst escalated tactics to exert pressure on President Nicolás Maduro’s regime. While Venezuelan crude exports constitute a minor share of the global supply, they remain a crucial source of revenue for the Maduro administration. In Europe, hostilities between Ukraine and Russia have once again targeted assets linked to energy, with a recent assault damaging port infrastructure and vessels in the Black Sea. This incident sparked a fire in a coastal community situated on a major route for Russian energy exports. Separately, data from the American Petroleum Institute (API) indicated that crude inventories increased by 2.4 million barrels last week, alongside rises in gasoline and distillate stocks. Looking ahead, oil appears on track for an annual decline exceeding 18%, as expectations rise for supply to surpass demand in the coming year.