Crude Oil Prices Extend Modest Gains in Early Trade on Dec 24

Crude oil prices posted modest gains on Wednesday, extending the upward momentum from the previous two sessions. Market sentiment remained positive, supported by signs of robust U.S. economic growth and rising concerns over potential supply disruptions from key oil-producing regions.

Brent crude futures rose by 4 cents, or 0.06%, to $62.42 a barrel by 0117 GMT. U.S. West Texas Intermediate crude added 3 cents, or 0.05%, to trade at $58.41 a barrel. While the gains were marginal, they reflected continued support following a strong rally earlier in the week.

Strong Start to the Week Supports Prices

Oil prices had jumped sharply at the start of the week, with Brent crude rising more than 2% on Monday, marking its biggest single-day gain in two months. WTI also recorded its strongest daily increase since November 14. The rally continued into Tuesday, with both benchmarks adding more than 0.5%, indicating sustained buying interest.

Supply Risks from Venezuela and Russia

Geopolitical developments have also played a key role in supporting oil prices. Earlier this month, U.S. President Donald Trump announced a blockade targeting oil tankers under sanctions entering and leaving Venezuela. This move has kept shipping companies on high alert and added uncertainty to global crude supply flows.

Reports indicate that more than a dozen oil-laden vessels are currently anchored off Venezuela, awaiting instructions from their owners. The situation intensified after U.S. authorities seized the supertanker Skipper earlier this month and targeted two additional vessels over the weekend.

Focus on U.S. Inventory Data

Market participants are also watching for the latest U.S. oil inventory data. The Energy Information Administration is scheduled to release its weekly report on Monday, later than usual due to the holiday period. The data could provide further direction for prices in the near term.

Also Read: ArcelorMittal to Invest $900 Million in 3 Renewable Energy Projects in India!

Conclusion

Crude oil prices remain supported by a combination of strong U.S. economic signals and heightened supply risks linked to sanctions and geopolitical tensions. While gains have been modest in recent sessions, ongoing uncertainty around Venezuelan exports and upcoming inventory data could continue to influence market direction in the days ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.