US oil prices rose after President Trump ordered a blockade on tankers entering or leaving Venezuela, but gains were short-lived due to concerns about a large global supply surplus. Despite the move, experts say the upside for oil prices is limited because even a loss of Venezuelan exports would still be consistent with a surplus in 2026.
In recent data, US crude oil stocks drew 1.3 million barrels, while gasoline and diesel inventories increased as refineries boosted production. This led to WTI settling up 1.2% at $55.94 a barrel and Brent rising 1.3% to $59.68.
Analysts from Capital Economics suggest that even a full loss of Venezuela’s exports would still lead to a surplus in the global oil market next year, limiting the upside for oil prices. However, ongoing disruption to Venezuela’s oil sector could still result in lower oil prices by 2026.
Source: https://www.wsj.com/finance/commodities-futures/oil-rises-on-likely-technical-recovery-5f5fa39d