Oil Holds Gains Near $58 Amid Rising Geopolitical Risks

New York | EcoPulse24

U.S. crude oil (WTI) prices held steady near $58.1 per barrel during Tuesday trading, preserving most of the gains from the prior session after a rise of more than 2%. The increase was fueled by escalating geopolitical risks and renewed concerns about global supply. Prices were supported by renewed uncertainty over efforts to end the war in Ukraine, after Russia's foreign minister stated that Moscow's negotiating stance could shift following allegations of attacks on President Vladimir Putin's residence. Earlier, the U.S. and Ukraine indicated "significant progress" towards a deal, while acknowledging that difficult issues remain unresolved.

Reports also indicated that Venezuela began shutting down some wells in a key oil-rich region as the U.S. imposed an energy shipment blockade. On Monday, U.S. President Donald Trump said the United States targeted an oil loading facility in the country, raising fears of potential supply disruptions.

Additionally, renewed tensions in the Middle East supported oil prices, with Trump warning of further strikes if Iran resumes rebuilding its nuclear program, fueling market concerns about broader regional instability.

Despite these short-term supportive factors, oil prices remain under annual pressure. Data show U.S. crude is down about 20% since the start of the year, heading for its largest annual loss since 2020, amid expectations of continued global oversupply and relatively balanced demand.