Oil prices rose in early trading due to the decline in US crude oil inventories exceeding expectations and traders closely watching the development of the situation in Venezuela. According to the latest report from the US Energy Information Administration, crude oil inventories fell by 3.8 million barrels last week, far exceeding expectations of a reduction of 900,000 barrels, the biggest drop since late October. Meanwhile, traders are digesting the latest US actions against Venezuela, including plans to control the Venezuelan oil industry and seizing two oil tankers. Saxo Bank analysts said, “Although geopolitical risks have temporarily prevented oil prices from falling further, the prospect of increased Venezuelan exports is already putting pressure on Canadian crude oil prices and may increase supply to markets already facing sufficient supply pressure.”

Oil prices rose in early trading due to the decline in US crude oil inventories exceeding expectations and traders closely watching the development of the situation in Venezuela. According to the latest report from the US Energy Information Administration, crude oil inventories fell by 3.8 million barrels last week, far exceeding expectations of a reduction of 900,000 barrels, the biggest drop since late October. Meanwhile, traders are digesting the latest US actions against Venezuela, including plans to control the Venezuelan oil industry and seizing two oil tankers. Saxo Bank analysts said, “Although geopolitical risks have temporarily prevented oil prices from falling further, the prospect of increased Venezuelan exports is already putting pressure on Canadian crude oil prices and may increase supply to markets already facing sufficient supply pressure.”