BEIJING/SINGAPORE: Oil prices rose for a sixth day on Wednesday supported by robust US economic growth and the risk of supply disruptions from Venezuela and Russia.
Brent crude futures climbed 17 cents, or 0.27%, to $62.55 a barrel by 0714 GMT, while US West Texas Intermediate crude added 20 cents, or 0.34%, to $58.58.
Both contracts have gained about 6% since December 16, when they plunged to near five-year lows.
“What we’ve seen over the past week is a combination of position squaring in thin markets, after last week’s breakdown failed to gain traction, coupled with heightened geopolitical tensions, including the US blockade on Venezuela and supported by last night’s robust GDP data,” IG analyst Tony Sycamore said.
US data showed the world’s largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.
“In that context, this morning’s API inventory build was easy to overlook. However, it likely encourages sellers to step in should the rally push toward $60.00 in the coming sessions,” Sycamore said.
US crude inventories rose by 2.39 million barrels last week, while gasoline stocks increased by 1.09 million barrels and distillate inventories rose by 685,000 barrels, market sources said, citing American Petroleum Institute figures on Tuesday.
The US Energy Information Administration is due to release official inventory data on Monday, later than usual due to the Christmas holiday.
On the supply side, disruptions to Venezuelan exports have been the most significant factor pushing up oil prices, while Russia’s and Ukraine’s continued attacks on each other’s energy infrastructure have also supported the market, Haitong Futures said in a report. More than a dozen loaded vessels are in Venezuela waiting for new directions from their owners after the US seized the supertanker Skipper earlier this month and targeted two additional vessels on the weekend.
US President Donald Trump last week announced a “blockade” of all vessels under sanctions entering or departing from Venezuela in a move to ramp up pressure on Venezuelan President Nicolas Maduro. Still, oil prices are poised for another quarterly loss, weighed down by forecasts for a surplus.
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