- WTI slips as Venezuela begins reversing Oil production cuts imposed during the US embargo.
- Two supertankers departed Venezuela carrying about 1.8 million barrels each, likely the first shipments under a US supply deal.
- API reported US crude Oil inventories rose by 5.27 million barrels in the week ended January 9.
West Texas Intermediate (WTI) Oil price halts its four-day winning streak, trading around $60.40 per barrel during the European hours on Wednesday. Crude Oil prices lost ground as Venezuela resumed exports.
Venezuela has started scaling back oil production cuts introduced during the US embargo. Crude exports are also resuming, signaling a gradual return of supply to global markets. Two supertankers left Venezuelan waters on Monday carrying roughly 1.8 million barrels of crude each, potentially marking the first deliveries under a 50-million-barrel supply agreement with the United States, sources cited by Reuters.
The American Petroleum Institute (API) reported Tuesday that Weekly Crude Oil Stock rose by 5.27 million barrels in the week ended January 9. The US Energy Information Administration (EIA) will release Crude Oil Stocks Change later on Wednesday. A Reuters poll on Tuesday showed US crude oil stockpiles likely fell last week, while gasoline and distillate inventories were expected to rise.
However, Oil prices held near a three-month high, supported by growing supply risks linked to escalating protests in Iran. The US-based HRANA rights group reported the protest death toll at 2,571. US President Donald Trump has canceled talks with Iranian officials and urged demonstrators to continue, raising fears that potential US involvement could threaten Iran’s roughly 3.3 million bpd Oil output.
Indian Oil Corporation has purchased its first cargo of Ecuador’s Oriente crude for end-March delivery as India’s largest refiner broadens its sourcing to partially replace Russian Oil. US and EU sanctions on Russian producers and vessels have disrupted supplies, pushing Indian refiners to seek alternative sources, per Reuters.
