Oil prices rise on Wednesday

Oil prices extended gains for a sixth straight session on Wednesday, supported by strong US economic growth and rising risks of supply disruptions from Venezuela and Russia, although the market still faced the prospect of a quarterly loss on surplus concerns.

Brent crude futures rose 17 cents, or 0.27 per cent, to $62.55 a barrel by 0714 GMT, while US West Texas Intermediate (WTI) gained 20 cents, or 0.34 per cent, to $58.58. Both benchmarks have climbed about 6 per cent since December 16, when prices slid to near five year lows.

Analysts said the rally reflected position squaring in thin year-end markets after last week’s sell-off failed to gather momentum, alongside heightened geopolitical tensions and robust US economic data.

The gains came despite signs of rising US crude inventories. Data from the American Petroleum Institute showed crude stocks increased by 2.39 million barrels last week, with gasoline and distillate inventories also rising. The US Energy Information Administration will publish official figures on Monday, delayed by the Christmas holiday.

Supply concerns remained a key driver. Disruptions to Venezuelan exports intensified after the US seized a supertanker earlier this month and targeted additional vessels, leaving more than a dozen loaded ships awaiting instructions.

President Donald Trump last week announced a blockade on sanctioned vessels entering or leaving Venezuela, adding pressure on President Nicolas Maduro. Ongoing attacks on energy infrastructure linked to the Russia-Ukraine conflict also lent support to prices.

Still, oil prices were on track for another quarterly decline, weighed down by expectations of a global supply surplus.

Attribution: Reuters