"Crude oil prices firmed today after heavy selling that pushed benchmarks toward five-year lows. The market reacted to the US move to impose a blockade on sanctioned oil tankers entering or leaving Venezuela. The announcement lifted the risk premium as energy logistics in the region are threatened and tensions rise further. Additionally, markets could remain attentive to any developments in Eastern Europe and the impact on Russian oil volumes."
"Risks of new sanctions on Russia if peace talks fail could also inflate the risk premium. Bullish momentum today was further aided by the API data, which reported a massive 9.3 million barrel draw in crude stocks, far larger than expected. Markets are now bracing for today's official EIA release to confirm the trend. Still, the jump in prices could be temporary as the market could remain under pressure, as the core narrative could continue to revolve around an oversupply in 2026."
Crude oil prices firmed after a period of heavy selling that pushed benchmarks toward five-year lows. The United States imposed a blockade on sanctioned oil tankers entering or leaving Venezuela, lifting the risk premium by threatening energy logistics in the region and increasing tensions. Markets remain attentive to developments in Eastern Europe and potential impacts on Russian oil volumes, including risks of new sanctions if peace talks fail. API data showed a 9.3 million barrel draw in crude stocks, supporting bullish momentum ahead of the official EIA release. Price gains may be temporary given a persistent 2026 oversupply narrative.
Read at London Business News | Londonlovesbusiness.com
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