Oil prices were largely unchanged during European trading on Wednesday, pausing after five consecutive sessions of gains. The market remained supported by renewed U.S.-Venezuela tensions and strong U.S. economic data, although activity stayed muted due to a holiday-shortened trading week.
By 05:05 ET, Brent crude futures for February delivery were up 0.1% at $62.42 per barrel, while WTI crude futures gained 0.2% to $58.48 per barrel. Both benchmarks have posted steady advances over the past week as traders priced in growing supply disruption risks.
Venezuela supply risks and U.S. growth data support prices
Geopolitical uncertainty continued to underpin crude markets, with tensions between Washington and Caracas once again raising concerns over Venezuelan oil exports. The United States has intensified enforcement actions against vessels linked to Venezuelan crude shipments, increasing the risk of reduced supply flows from the OPEC producer.
Although Venezuela’s output represents a relatively small share of global production, analysts noted that any disruption adds to a broader risk premium, particularly at a time when markets remain highly sensitive to geopolitical developments.
Oil prices also drew support from stronger-than-expected U.S. economic data. Figures released earlier showed the U.S. economy expanded at an annualized rate of 4.3% in the third quarter, highlighting resilience in consumer spending and business activity. The data eased concerns about slowing demand in the world’s largest oil-consuming nation.
Holiday trading limits market activity
Despite the supportive fundamentals, trading volumes remained light as several major markets operated on reduced schedules. U.S. financial markets were set to close early on Wednesday for Christmas Eve and remain closed on Thursday, while year-end holidays across Europe and Asia further limited participation.
Traders warned that thinner liquidity could amplify price moves, increasing the risk of sharper swings as markets react to headlines.
U.S. crude inventories rise unexpectedly – API
Market participants also assessed the latest inventory data from the American Petroleum Institute (API). The report showed U.S. crude oil stockpiles rose by approximately 2.4 million barrels in the week ended December 19, surprising expectations for a draw and reversing the sharp decline recorded the previous week.
Attention now turns to the official inventory report from the U.S. Energy Information Administration (EIA), due later in the day. The data is expected to provide further insight into refinery activity, fuel demand, and overall supply conditions.
