Crude oil prices remained capped below the $60-per-barrel threshold in global markets as investors weighed persistent supply-side strength against signs of fragile demand, despite simmering geopolitical tensions involving major oil-producing nations.
Although prices staged a modest rebound from recent lows, the recovery lacked momentum after crude briefly slid to the $58 level earlier in the week, triggered largely by renewed diplomatic and trade frictions between the United States and Venezuela.
Market participants continued to lock in profits while reassessing the broader outlook for energy markets, amid mounting evidence that global supply remains ample and consumption growth is losing steam. These dynamics have blunted the impact of geopolitical flashpoints that would typically inject a stronger risk premium into prices.
As of the latest trading session, Brent crude futures were priced at $59.87 per barrel, marking a decline of approximately 0.5% from the previous close of $60.17. Meanwhile, the US benchmark West Texas Intermediate (WTI) crude also slipped by about 0.5%, trading at $56.24 per barrel, down from $56.52 in the prior session.
Fresh data from the US Energy Information Administration (EIA) reinforced concerns around demand softness in the world’s largest oil-consuming economy. According to the agency, commercial crude oil inventories declined by roughly 1.3 million barrels during the most recent reporting week. However, the drawdown fell short of market expectations, which had anticipated a steeper decline of around 2.4 million barrels.
At the same time, gasoline inventories surged by approximately 4.8 million barrels, a development that raised questions about downstream demand strength. Average daily crude oil production in the United States also edged higher, increasing by around 10,000 barrels per day.
The combination of rising refined fuel stockpiles, steady-to-higher US output, and the absence of immediate supply disruptions from key producing regions has reinforced the perception that global oil markets remain well supplied.
Even the ongoing war between Russia and Ukraine, along with the continuation of Western sanctions on Russian energy exports, has failed to significantly influence price direction. Markets appear to be operating under the assumption that Russian crude flows will continue largely uninterrupted, limiting any meaningful geopolitical risk premium.
Similarly, escalating tensions between Washington and Caracas have not translated into sustained price gains. So far, there has been no concrete evidence of major supply disruptions stemming from US actions against Venezuela’s oil trade.
US President Donald Trump on Wednesday defended his administration’s decision to enforce a naval blockade targeting Venezuela, framing the move as a necessary measure to safeguard American interests and curb unauthorized maritime activity.
“We’re not gonna let anybody going through that shouldn’t be going through. They took all of our energy rights—they took all of our oil from not that long ago … they illegally took it,” Trump said while addressing reporters.
His comments followed an earlier announcement declaring a “total and complete blockade” of all sanctioned oil tankers entering or leaving Venezuela. Trump also described the government of President Nicolas Maduro as a “foreign terrorist organization,” intensifying diplomatic rhetoric.
The US president characterized the blockade as a response to what he called the unlawful seizure of American energy assets, reiterating long-standing grievances related to Venezuela’s oil industry.
In response to the escalating situation, President Nicolas Maduro issued an urgent appeal to neighboring Colombia, calling for military solidarity amid what he described as growing external pressure.
According to estimates from Rystad Energy, Venezuela currently produces approximately 1.1 million barrels of crude oil per day. While any major disruption could tighten supplies, analysts note that Venezuela’s output represents a relatively modest share of the global oil market. However, more than 67% of the country’s production consists of heavy crude, which is more difficult to replace in the short term.
For now, investor attention remains firmly fixed on demand indicators and inventory data, with geopolitical uncertainty continuing to take a back seat in shaping near-term price movements.
