Oil prices continued their five-day rally on Tuesday (December 23), as traders weighed rising geopolitical tensions and higher inventory data. West Texas Intermediate (WTI) traded around $58 per barrel, after posting a nearly 6% gain in the previous five sessions, while Brent closed above $62 per barrel.

One factor driving oil prices is the US action against Venezuela, which is currently pursuing a third oil tanker off the coast of the country. The US government is increasing pressure on the government of Nicolás Maduro, exacerbating tensions in the region and adding uncertainty to the oil market.

Meanwhile, Russian oil is also piling up at sea, with volumes surging 48% since the end of August. This has added to concerns among shippers and buyers of Russian oil, who fear that their cargoes could also be targeted following US action against Venezuela. These tensions have further exacerbated global oil price volatility.

In the US, an industry report showed that crude oil inventories rose by 2.4 million barrels last week, with gasoline and distillate inventories also rising. Official government data is scheduled for release on December 29th, instead of Wednesday as previously planned, after President Donald Trump declared a federal holiday.

WTI for February delivery rose 0.1% to $58.45 per barrel at 7:26 a.m. in Singapore. Brent for February settlement closed 0.5% higher at $62.38 per barrel.

Oil prices are expected to continue to depend on developments in geopolitical tensions and evolving inventory data. Investors and traders will continue to monitor these market dynamics to predict the next direction in oil prices amid heightened global uncertainty. (asd)

Source: Bloomberg