Oil prices slipped for the first time in six sessions on Wednesday, but remained higher for the week, supported by robust U.S. economic growth and the risk of supply disruptions from Venezuela ?and Russia, though prices were on course for their steepest annual decline since 2020.
Brent crude futures slipped 19 cents, or 0.3%, to $62.19 U.S. a barrel, while U.S. West Texas Intermediate crude fell five cents, or 0.1%, to $58.33.
Still, both contracts have gained more than 5% since December 16, when they plunged to near five-year lows. They’re also up around 2% week to date.
Cited by CNBC, U.S. data showed the world’s largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.
Still, Brent was set to drop 16% and WTI prices are on track to wither 18%, this year - their steepest declines since 2020 when the COVID-19 pandemic decimated oil demand.
On the supply side, disruptions to Venezuelan exports have been the most significant factor pushing up oil prices, while Russia’s and Ukraine’s continued attacks on each other’s energy infrastructure have also supported the market.
More than a dozen loaded vessels are in Venezuela waiting for ?new directions from their owners after the U.S. seized the supertanker ?Skipper earlier this month and targeted two additional vessels over the weekend.
U.S. President Donald Trump last week announced a “blockade” of all vessels under ?sanctions entering or departing from Venezuela to increase pressure on Venezuelan President Nicolas Maduro.
Meanwhile, U.S. crude inventories rose by 2.39 million barrels last week, while gasoline stocks increased by 1.09 million barrels and distillate inventories rose by 685,000 barrels.
The U.S. Energy Information Administration is due ?to release official inventory data on ?Monday, later than usual due to the Christmas holiday.
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