Oil prices remained firm as traders weighed geopolitical tensions from Venezuela to Russia and Yemen against concerns about a global oversupply.

West Texas Intermediate (WTI) prices reached over $58 per barrel in quiet trading ahead of the holidays. The United Arab Emirates said it would withdraw troops from Yemen after escalating tensions with its oil-rich ally, Saudi Arabia, over military operations in the conflict-torn country.

At the same time, President Donald Trump's efforts to end the war in Ukraine faced a new obstacle after Russia's Vladimir Putin said he would revise his negotiating position.

Despite these risks, OPEC+ members meeting later this week are expected to stick to their plan to hold off on further supply increases amid growing evidence of a global surplus, according to three delegates.

Crude oil prices remain on track for a sharp annual decline due to concerns that production will outstrip demand after OPEC+ increased output in an effort to regain market share. Among signs of abundant supplies, the amount of oil stored on idled tankers continues to rise, according to Vortexa Ltd. data.

The supply outlook is further complicated by the Trump administration's continued partial US blockade that has restricted exports from Venezuela. The South American nation has begun shutting oil wells and seeing local storage tanks fill, a major blow to President Nicolas Maduro, who during the blockade has sought to maintain exports that are a core part of the economy.

In the US, crude oil stocks at the Cushing, Oklahoma, hub saw their biggest weekly increase since late October in the period to December 19, according to government figures. Nationally, gasoline and distillate stocks also rose.

West Texas Intermediate crude for February delivery rose 0.465% to $58.35 a barrel at 10:42 a.m. in New York. Brent crude for February settlement, which expires Tuesday, rose 0.178% to $62.05 a barrel. (alg)

Source: Bloomberg