Oil prices experienced a downturn, falling below $60 per barrel due to a combination of factors including escalating geopolitical tensions and expectations of rising inventory levels. These downward pressures outweighed supportive elements like temporary supply disruptions in Kazakhstan and continued efforts to enforce sanctions on Venezuela’s oil trade.
- WTI crude oil futures decreased, falling below $60 per barrel.
- President Trump’s stance on Greenland and potential European tariffs contributed to economic growth concerns.
- US crude and gasoline inventories were expected to increase, while distillate stockpiles were projected to decrease.
- Kazakhstan temporarily halted output at the Tengiz and Korolev fields due to power issues.
- US forces seized a seventh Venezuela-linked oil tanker, intensifying sanctions enforcement.
The convergence of these events creates a volatile environment for oil markets. Concerns regarding global economic growth and increasing inventories are putting downward pressure on prices, while supply disruptions offer some counteracting support. Geopolitical tensions, particularly those involving major oil-producing regions, further contribute to uncertainty.