FX.co ★ Oil Rises by Over 2%

WTI crude oil futures experienced a rise of over 2%, reaching approximately $57.8 per barrel on Monday. This increase was prompted by renewed supply concerns due to geopolitical tensions. The United States intensified its measures against Venezuela by boarding the tanker Centuries, which was transporting around 2 million barrels of Venezuelan crude, and pursuing another vessel, highlighting Washington's ongoing efforts to curb financial inflows to Nicolás Maduro’s administration. Despite Venezuela possessing the largest crude oil reserves globally, its exports, predominantly directed towards China, now account for less than 1% of global supply, thereby mitigating direct effects but increasing risk premiums. Further supply anxieties were fueled by Ukraine's drone strike on a “shadow fleet” tanker operated by Russia in the Mediterranean, following prior assaults on Russian energy facilities. Although these geopolitical events are bolstering oil prices, crude oil is still projected to end the year with a decline, largely due to expectations of an oversupplied market.