Oil prices ended higher after news that the United States seized an oil tanker near the coast of Venezuela, raising concerns about the availability of crude supplies in the short term. According to officials, the seizure was carried out by the U.S. Coast Guard, although they did not disclose the name of the vessel or the exact location where the action took place. Brent crude futures rose by 27 cents, settling at $62.21 per barrel. US West Texas Intermediate futures gained 21 cents to close at $58.46 per barrel. The increases came despite an earlier drop in prices during the trading session. The move added to existing worries in markets already sensitive to disruptions involving Venezuelan, Iranian and Russian oil cargos.
Analysts said that oil prices could react even more sharply if this type of enforcement action continues. Traders have been watching geopolitical developments closely, particularly disruptions to oil movements that could pressure supply. A separate event on the same day involved Ukrainian sea drones striking a tanker linked to Russian oil exports, which was the third such incident in two weeks.
In addition to geopolitical factors, economic data also influenced the market. The U.S. Federal Reserve reduced its benchmark interest rate by a quarter of a percentage point, a decision expected to support economic activity and potentially boost oil demand through stronger growth. Fed Chair Jerome Powell did not indicate whether additional rate cuts were likely soon. U.S. government data showed that crude inventories fell by 1.8 million barrels in the week ended December 5, less than the 2.3 million barrel draw analysts had expected. The smaller-than-expected inventory draw contributed to earlier pressure on prices before news of the tanker seizure lifted sentiment.
Overall, the combination of supply concerns from the tanker interception, broader geopolitical tensions and central bank policy helped lift oil prices at the end of the trading day. |
