Oil rose in the early Asian session amid rising tensions between the U.S. and Venezuela.
The U.S. seized an oil tanker off the coast of Venezuela, President Donald Trump said Wednesday, in a move likely to ramp up tensions with the government of President Nicolas Maduro.
The move comes amid heightened tension between Washington and Caracas, and hours after the country's opposition leader left the country on a boat.
US forces intercepted and seized a sanctioned oil tanker off the coast of Venezuela, marking a serious escalation of tensions between the two countries. “We've just seized a tanker on the coast of Venezuela — large tanker, very large, largest one ever seized, actually,” President Donald Trump said at the White House.
U.S. seizes oil tanker off the coast of Venezuela: Report
U.S. crude oil inventories fell by 1.8 million barrels last week and were about 4% below the five-year average for the time of year, the EIA said.
Crude oil holds steady as traders eye a 7M barrel inventory draw and Fed rate cut; rising U.S. production and weak demand keep oil outlook under pressure.
Natural gas and oil prices stabilize as oversupply pressures rise. WTI holds $58 while traders await IEA, OPEC signals and a Fed rate cut that could shape demand outlooks.
Oil edged higher in early Asian trade on a likely technical recovery after oil futures posted back-to-back losses on Tuesday.
Crude oil collapsed Tuesday to $58.17, rejecting a major resistance confluence at the falling channel top and multiple averages while confirming last week's 50-day breakout has failed and accelerated the downtrend toward $57.21 and potentially the October low.
Oil and natural gas retreat as growing supply forecasts, weak momentum signals, and bearish technical patterns raise downside risks ahead of key EIA and OPEC+ updates.
Oil prices fell slightly in Asian trade. Investors were monitoring ongoing talks to end the Ukraine-Russia war ahead of an expected Federal Reserve rate cut this week, said UOB.