- WTI price drifts lower to near $58.00 in Tuesday’s early European session.
- Traders assess the possible impact on crude flows from Venezuela after the US capture of Maduro.
- The API crude oil stockpiles report will be released later on Tuesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $58.00 during the early European trading hours on Tuesday. The WTI price declines amid Venezuela uncertainty. Traders continue to assess the potential impact on crude flows from Venezuela following the United States’ (US) capture of Venezuelan President Nicolas Maduro.
US President Donald Trump’s plan to take control of Venezuela’s oil industry and ask American companies to revitalize it after capturing Maduro in a raid isn’t likely to have a significant immediate impact on oil prices.
Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, said that the oil price response to major geopolitical events, such as the US military intervention in Venezuela and ongoing strikes on Russian energy infrastructure, has been surprisingly muted, implying that fundamental demand-supply factors remain the key concern.
Traders will closely monitor the developments surrounding Venezuela’s oil flow changes. Any signs of heightened geopolitical tensions and disruption risks linked to Venezuela could boost the WTI price in the near term.
The release of the American Petroleum Institute (API) crude oil stockpiles report will be in the spotlight later in the day. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might drag the WTI price lower.
