FX.co ★ Oil Rises on US Seizure of Venezuelan Tanker

West Texas Intermediate (WTI) crude oil futures increased to nearly $59 per barrel on Thursday, building on gains from the prior day. This rise followed the interception by the United States of a sanctioned tanker near Venezuela, prompting a reduction in shipments from this South American nation and stoking fears of escalating tensions in the region. These geopolitical concerns intensified as Ukraine targeted a shadow-fleet tanker connected to Russia’s oil trade, despite American appeals for a ceasefire. It marks the fifth attack on Russia-affiliated vessels since late in the previous month. These rising geopolitical tensions are occurring amidst a bearish outlook for crude oil, with increased production from OPEC+ and its allies expected to surpass weak demand, potentially leading to an oversupply. New reports from OPEC and the International Energy Agency (IEA), expected on Thursday, are anticipated to shed further light on market conditions. Meanwhile, recent government data revealed that U.S. crude inventories decreased by 1.8 million barrels last week. However, stock levels in Cushing, Oklahoma, rose after four consecutive weeks of declines, yet remained at their lowest seasonal level since 2007.