New York, USA – Oil prices stabilized in early trading on Tuesday, after rising in the previous session. Market participants are currently assessing several conflicting factors. These include the risks stemming from Ukrainian drone attacks on Russian energy facilities, escalating tensions between the United States and Venezuela, and mixed forecasts regarding US fuel inventories.
According to Reuters, Brent crude futures rose by 7 cents, or 0.1%, to $63.24 a barrel.
U.S. West Texas Intermediate (WTI) crude rose 10 cents, or 0.2%, to $59.42 a barrel.
Past gains and the impact of geopolitical events
Both benchmark crude oils had gained more than 1% in Monday’s session. West Texas Intermediate crude approached its highest level in two weeks.
In a note to clients, Saxo analysts indicated that the stability in oil prices reflects traders’ anticipation of US President Trump’s actions regarding Venezuela. Traders are also assessing the damage inflicted on the Black Sea power plant by the Ukrainian attacks.
Caspian Sea shipments resume
The Caspian Pipeline Union announced on Monday the resumption of oil shipments from one of its Black Sea terminals. This follows a major Ukrainian drone attack on November 29. The Russian newspaper Kommersant quoted sources confirming the resumption of oil loading operations at one terminal, while another damaged terminal remains out of service.
