FX.co ★ Oil Rises After US Seizes Venezuelan Tanker

Oil prices made a recovery from earlier declines on Wednesday, with WTI crude futures increasing by over 1% to reach $58.9 per barrel due to growing concerns about supply availability. This uptick followed revelations that the United States had taken control of an oil tanker near Venezuela's coast, significantly intensifying tensions between the nations and elevating the possibility of additional tankers facing seizure or sanctions. Initially, during the trading session, crude prices had decreased by up to 1% over anxieties regarding an oversupplied global market. This sentiment deteriorated further after U.S. energy officials forecasted that domestic crude production would rise to an unprecedented 13.6 million barrels per day within the year, exacerbating the surplus in the global market. Investors are now anticipating the release of key reports from the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) later this week, which are expected to provide more definitive insights into the supply-demand dynamics. Concurrently, the latest data from the Energy Information Administration (EIA) indicated a decrease in U.S. crude inventories by 1.812 million barrels in the past week, despite significant increases in gasoline and distillate stockpiles.