WTI Rises Amid Geopolitical Supply Concerns
West Texas Intermediate (WTI) Oil price climbed to near $57.70 during European trading hours on Friday. Crude Oil prices edged higher on potential supply concerns stemming from escalating geopolitical tensions.
Kyiv has stepped up strikes on Russian energy infrastructure in recent months to disrupt Moscow’s military financing. Meanwhile, Russia and Ukraine exchanged accusations over civilian attacks on New Year’s Day, despite intensive United States‑led talks under the President of the United States to end the nearly four‑year conflict.
The United States Treasury Department on Wednesday sanctioned the Panama‑flagged Nord Star, Guinea‑flagged Lunar Tide, and Hong Kong‑flagged Della for allegedly transporting Venezuelan crude or fuel this year to Asia and the Caribbean, aiding President Maduro’s government in evading sanctions. According to Reuters, these measures targeted four tankers linked to a so‑called “shadow fleet.”
United States Crude Oil stockpiles fell by 1.934 million barrels last week, the largest draw since mid‑November and well above expectations for a 0.9 million‑barrel decline, according to the United States Energy Information Administration (EIA).
Traders are now looking forward to the virtual meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for Sunday, with expectations that the group will uphold its November decision to pause further production increases.