Oil Prices Rise Amid Geopolitical Tensions and Falling U.S. Inventories

Global oil prices extended their gains during Thursday's trading, supported by rising geopolitical risks and growing supply concerns. Futures for Brent crude rose by more than 1%, heading towards $61 per barrel, while West Texas Intermediate (WTI) futures increased by nearly the same amount, nearing $57 per barrel, continuing their rebound from five-year lows.

The primary support for prices came after the United States ordered a complete shutdown of maritime traffic related to sanctioned oil tankers heading to and from Venezuela. This followed last week's escalation when U.S. forces detained a blacklisted tanker off the Venezuelan coast, raising market concerns about oil flows from Latin America.

At the same time, Washington is moving towards tightening sanctions on the Russian energy sector as part of efforts to push for peace talks regarding Ukraine, which has sparked growing fears of potential disruptions in global supplies, especially if the restrictions on Russian exports expand.

On the data front, figures from the U.S. Energy Information Administration (EIA) showed that U.S. crude oil inventories fell by 1.27 million barrels last week, marking the second consecutive decline, exceeding market expectations of a drawdown of about 1.1 million barrels.

Inventories at Cushing, Oklahoma, the main delivery point for WTI contracts, recorded their largest drop in nearly two months, further indicating tightening supplies. Conversely, gasoline and distillate inventories rose, partially limiting the bullish momentum for prices.

These developments reflect the ongoing sensitivity of oil markets to geopolitical tensions alongside fundamental inventory-related factors, as investors closely monitor any political updates or data that may impact the balance of global supply and demand in the upcoming period.