FX.co ★ WTI Crude Erases Losses

WTI crude oil futures nudged slightly upward to reach $60.5 per barrel on Friday. This increase came as heightened concerns over potential military conflict in Venezuela temporarily overshadowed the prevalent perception of an oversupplied energy market. Petroleum-derived commodities experienced a spike in prices due to worries that the United States might intervene in Venezuela. This scenario added to existing supply challenges in the short term, following sanctions imposed by the Trump administration on Rosneft and Lukoil, aiming to disrupt the flow of inexpensive crude to Asia. Despite these developments, the ongoing surge in oil production and the steady movement of tankers have maintained the overarching scenario of abundant oil supply. OPEC+ countries are poised to confirm an increase of 137,000 barrels per day in the group's output for December, reinforcing their strategy to reclaim market share. This move aligns with the rising production levels reported by companies with operations in regions such as the United States and the North Sea. Furthermore, the volume of oil stored in tankers at sea surged to an unprecedented 1.4 billion barrels this week, influencing projections for global stockpiles.