- Oil prices hold five-day gain despite rising inventories and geopolitical tensions
- WTI trades above $58, Brent settles above $62 amid Venezuela tanker pursuit
- Russian crude volumes at sea up 48% since August end amid US pressure
Oil held a five-day gain as traders weighed escalating geopolitical tensions against swelling inventories.
West Texas Intermediate traded above $58 a barrel after gaining almost 6% in the prior five sessions, while Brent settled above $62 on Tuesday. Washington is still in pursuit of a third oil tanker off the coast of Venezuela as the White House ramps up pressure on Nicolás Maduro's government.
Meanwhile, Russian crude is building up at sea, with the volume jumping 48% since the end of August. The US actions in Venezuela may be raising concerns among shippers and buyers of Russian barrels, who worry their cargoes could also be targeted.
In the US, an industry report showed crude stockpiles increased by 2.4 million barrels last week, with holdings of gasoline and distillate both rising. Official data is set to be released on Dec. 29, rather than Wednesday as originally planned, after President Donald Trump declared a federal holiday.
Oil is poised for an annual loss, with supply expected to outpace demand heading into next year. WTI futures have lost about 18% this year, and are on track for the biggest annual decline since 2020. Still, geopolitical risks have stemmed the decline and kept a floor under prices.
Trading volumes are thin ahead of Christmas and New Year holidays, with many traders away. Markets will be closed on Thursday.
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