(RTTNews) – Crude oil fell on Wednesday, extending yesterday’s decline amid thin trading amid the holiday season, as investors avoided making big moves as the value of the US dollar increased.
Additionally, traders analyzed various inventory data releases from yesterday and today.
WTI crude oil for February delivery was last seen trading at $57.47 per barrel, down $0.48 (or 0.83%).
The holiday season, which started last week, is about to end soon and hence traders have backed off from risky bets.
As largely expected, the minutes of the US Federal Reserve’s December meeting released yesterday showed divisions among policymakers on future rate cuts.
Today, the US Dollar Index was last seen trading at 98.33, up 0.10 (or 0.10%).
Today, data provided by the US Energy Information Administration showed that for the week ending December 26, US crude oil inventories fell by 1.934 million barrels, well above market expectations of a decline of 0.9 million barrels.
Commercial crude oil inventories stood at 423 million barrels.
For the same period, gasoline inventories increased by 5,845,000 barrels, distillate inventories increased by 4.977 million barrels, and heating oil inventories increased by 134,000 barrels.
Meanwhile, US Petroleum Institute data showed that for the week ending December 26, US crude oil stockpiles increased by 1.7 million barrels.
There have been positive signs from US President Donald Trump’s peace plan to end the Russia-Ukraine war.
Despite territorial concessions in the revised 20-point proposal being the bone of contention, Russia said the talks were nearing the final stage, although Trump said “one or two thorny issues” remained.
Ukrainian President Volodymyr Zelensky expressed distrust of Russia, suggesting that Trump should visit Ukraine to assess the situation. Zelensky is set to discuss the peace deal with his European allies on January 6 before signing it.
The US-Venezuela conflict has reached a new phase.
The CIA confirmed a drone strike on a Venezuelan coastal port on December 24. By now, the US was engaged in maritime attacks against the Latin American nation.
With this attack, the American offensive has moved inside Venezuelan territory.
Venezuela’s political allies Russia or China have not stepped into this scenario, although concerns remain that they might do so.
In the Middle East, the conflict between Saudi Arabia and the United Arab Emirates over Yemen took a dramatic turn when the Saudi-led coalition carried out an airstrike on the port of Mukalla in southern Yemen on what it said was an unauthorized shipment belonging to the UAE carrying weapons for STC separatists.
Following these attacks, the United Arab Emirates agreed to withdraw its forces from Yemen.
Eager to take the Gaza peace deal to the next phase, Trump wants Palestinian militant group Hamas to completely disarm as he did in the first phase of the plan. Trump warned them of dire consequences if they did not do so.
Iran’s President calls for “total war” against the US, Israel and the West as their sanctions on Iranian oil are draining Iran’s finances, Trump warns Iran not to renew its nuclear program.
With sarcasm, Trump said the US “doesn’t want to destroy the B-2.”
The OPEC+ alliance has put its output growth target on hold until early 2026.
Experts are warning of oversupply next year and a resulting drop in prices.
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