(Bloomberg) — Oil steadied as traders weighed geopolitical tensions from Venezuela to Russia and Yemen against concerns about a global glut.
West Texas Intermediate futures were little changed to settle near $58 a barrel in quiet trading ahead of New Year’s. The United Arab Emirates said it will withdraw forces from Yemen following a flare up in tensions with oil-rich ally Saudi Arabia over military operations in the conflict-hit country. At the same time, President Donald Trump’s push to for a peace plan in Ukraine faces fresh obstacles after Russia’s Vladimir Putin said he would revise his negotiating position. Moscow’s oil has come under tighter international sanctions in an effort to force an end to the war.
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Despite those risks, OPEC+ members meeting this weekend are expected to stick with plans to pause further supply hikes amid growing evidence of a global surplus, according to three delegates.
Crude remains on course for a steep annual decline on concern production will eclipse demand after OPEC+ ramped up output in a bid to recapture market share. Among signs of abundant supplies, the amount of oil held on idle tankers has been steadily rising, Vortexa Ltd. data show.
The supply outlook has been further complicated as the Trump administration presses on with a partial US blockade that’s crimped exports from Venezuela. The South American country has started to shut wells and see local storage tanks to fill, in a reality check for President Nicolas Maduro, who throughout the blockade has attempted to maintain exports that are at the core of the economy.
In the US, crude stockpiles at the key Cushing, Oklahoma, hub saw the biggest weekly build since late October in the period to Dec. 19, according to government figures. On a nationwide basis, holdings of gasoline and distillates also rose.
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