Particle.news
Download on the App Store

Oil Falls for Second Week as Glut Fears Eclipse Venezuela Blockade Threat

Oversupply expectations dominate, with swelling seaborne inventories anchoring benchmarks.

Overview

  • Brent hovered around $59–$60 and WTI in the mid‑$50s on Friday, marking a second straight weekly decline for both benchmarks.
  • President Donald Trump’s order to block sanctioned tankers to and from Venezuela sparked only brief gains as traders questioned enforcement and Venezuelan cargoes to China continued.
  • Growing optimism over a potential RussiaUkraine peace deal reduced perceived supply risk and weighed on crude prices, analysts said.
  • Industry trackers reported large volumes of crude on water and rising floating storage, reinforcing a 2026 surplus narrative that has muted geopolitical risk premiums.
  • OPEC+ is pausing planned output increases through Q1 2026 after a modest December rise, while new sanctions on Russian-linked flows and Ukrainian strikes on refineries provided only short‑lived price support.