Crude oil prices firmed today after heavy selling that pushed benchmarks toward five-year lows.
The market reacted to the US move to impose a blockade on sanctioned oil tankers entering or leaving Venezuela.
The announcement lifted the risk premium as energy logistics in the region are threatened and tensions rise further.
Additionally, markets could remain attentive to any developments in Eastern Europe and the impact on Russian oil volumes. Risks of new sanctions on Russia if peace talks fail could also inflate the risk premium.
Bullish momentum today was further aided by the API data, which reported a massive 9.3 million barrel draw in crude stocks, far larger than expected. Markets are now bracing for today’s official EIA release to confirm the trend.
Still, the jump in prices could be temporary as the market could remain under pressure, as the core narrative could continue to revolve around an oversupply in 2026.
