Oil Holds Gain As Traders Weigh Geopolitics Against Inventories

Oil held the bulk of a gain as traders weighed geopolitical tensions from Venezuela to Russia and Iran against concerns about a glut.

West Texas Intermediate traded near $58 a barrel after rising 2.4% on Monday, while Brent settled below $62. Venezuela started to shut wells in a region holding the world’s largest deposits in the face of a US blockade. Separately, President Donald Trump said the US struck a facility inside the country.

That came as Trump’s renewed push to end the war in Ukraine faced new obstacles after Russian President Vladimir Putin said he would revise his negotiating position after alleged drone attacks on his residence. Meanwhile, the US leader vowed to strike Iran again again if it rebuilt its nuclear program.

Crude remains on course for a steep annual drop on concern global production will eclipse demand after OPEC+ ramped up output in a bid to recapture market share. Among signs of abundant supplies, the amount of oil held around the world on tankers that have been stationary for at least seven days surged 15% last week, according to Vortexa Ltd. That lifted the total toward a peak seen last November that was the highest since 2020.

In the US, government data showed that crude stockpiles at the key Cushing, Oklahoma, hub saw the biggest weekly build since late October in the period to Dec. 19. On a nationwide basis, holdings of gasoline and distillates also rose. The release was delayed from last week due to the Christmas holiday.