Oil Prices Remain Stable Amidst Global Uncertainty
Oil prices held steady on Wednesday as traders await key US weekly reserve data. The impact of recent US sanctions on Russia’s oil sector and its buyers remains unclear, contributing to market hesitation.
brent crude, for January delivery, edged down 0.22% to $64.30 a barrel at 11:20 a.m.GMT (12:20 p.m. in Paris). West Texas Intermediate (WTI), for December delivery, fell slightly by 0.31% to $60.37 a barrel.
The US recently imposed sanctions on Russian oil giants Rosneft and Lukoil. Early indications suggest these sanctions might potentially be having an effect, with DNB analysts reporting a “sharp fall” in Russian crude exports last week, perhaps signaling a shift away from sanctioned barrels.
Geopolitical factors are also at play. The recent US-China trade deal reduces the likelihood of retaliatory measures from the US. However, tensions are rising elsewhere. The US has increased its military presence near Venezuela, ostensibly to combat drug trafficking, but Venezuelan President Maduro alleges a desire to control the country’s oil resources. Moreover, President Trump has threatened intervention in Nigeria, an OPEC+ member, citing religious persecution.
Despite these developments, concerns about global overproduction continue to weigh on prices. The American Petroleum Institute (API) reported a crude stock increase of 6.5 million barrels last week, alongside a gasoline stock decrease of 5.7 million barrels.
More reliable data from the US Energy Facts administration (EIA) is expected later today.analysts surveyed by Bloomberg predict a crude stock decline of 286,000 barrels and a gasoline stock drop of 1.84 million barrels.
PVM Energy analyst Tamas Varga notes increasing pressure on oil-producing nations,but emphasizes the uncertainty surrounding any “significant impact on global oil supply.”
