FX.co ★ Oil Holds Advance

WTI crude oil futures experienced a slight dip to $57.7 per barrel on Tuesday, yet largely retained the gains achieved on Monday due to increased geopolitical risks. Reports indicate that Venezuela initiated the shutdown of wells in a crucial oil-rich region in response to a U.S. blockade intended to exert economic pressure on the country. Meanwhile, uncertainty re-emerged regarding efforts to resolve the conflict in Ukraine, with Russia's foreign minister indicating that Moscow's negotiating stance would shift following alleged strikes on President Putin's residence. Prior to these assault allegations, the U.S. and Ukraine claimed they had made significant progress towards finalising an agreement, albeit acknowledging that "thorny issues" remain unresolved. In the Middle East, Saudi air strikes in Yemen and Iran's proclamation of a "full-scale war" with the U.S., Europe, and Israel have intensified concerns over potential widespread instability. Former President Trump has cautioned about additional strikes should Iran recommence nuclear development activities. Despite these tensions, oil prices have declined nearly 20% this year, set to mark the most significant annual decrease since 2020, amid projections of plentiful global supply.