(RTTNews) – Crude oil fell on Tuesday after sharp gains yesterday as US data showed a modest rise in crude inventories.
Decline was largely limited by geopolitical tensions in the Middle East and South America, as well as diminishing prospects for a Russia-Ukraine ceasefire.
WTI crude oil for February delivery was last seen trading at $57.92 per barrel, down $0.16 (or 0.28%).
Crude oil inventories rose by 405,000 barrels in the week ended December 19 after two weeks of decline, according to the US Energy Information Administration report released late last night. Economists had expected crude oil inventories to fall by 2.6 million barrels.
Over the same period, gasoline stockpiles increased by 2,862,000 barrels and distillate stockpiles increased by 0.202 million barrels. However, heating oil stockpiles declined by 399,000 barrels.
Baker Hughes Co. data showed U.S. crude oil rigs rose to 412 in the week ended Dec. 30 from 409 the previous week, and total rigs rose to 546 from 545 the previous week.
The US peace proposal prepared by US President Donald Trump to end the Russia-Ukraine war took an unexpected turn today with Russia claiming that Ukraine has carried out a drone strike on one of the official residences of Russian President Vladimir Putin in Novgorod in north-western Russia. However, no casualties were reported.
Russia has announced that it will take an “opposite stance” in the ongoing peace talks.
Ukrainian President Volodymyr Zelensky denied Russia’s claims, calling them “complete fabrications” intended to upset peace talks and provoke further attacks on Ukraine.
Experts worry that these claims and counterclaims may derail the progress made so far in the peace process.
In South America, accusing Venezuela of being involved in illegal drug trafficking into the US, Trump had previously ordered a complete “naval blockade” of all “sanctioned oil tankers” entering or leaving Venezuelan ports.
Yesterday, Trump made a fresh announcement that the US attacked and destroyed a docking area for ships in Venezuela and all the boats there.
As U.S. attacks move from sea to land, experts warn there could be more trouble if China or Russia move to directly support Venezuela.
In the Middle East, Iran declared “total war” on the US and the West. In response, Trump warned Iran of facing serious consequences if it tried to create a new nuclear program.
After talks with Israeli Prime Minister Benjamin Netanyahu, Trump warned the Palestinian militant group Hamas to abide by the peace deal signed months ago and disarm itself.
Tension is increasing between Saudi Arabia and United Arab Emirates in the Middle East.
Saudi Arabia launched airstrikes on Southern Transitional Council separatists last Friday and today bombed the port city of Mukalla in Yemen’s Hadramaut region, targeting an arms shipment destined for the STC.
STC separatists were trying to capture the oil-rich areas of Hadramaut and the eastern province of al-Mahra in Yemen.
The US Dollar Index was last seen trading at 98.19 today, up 0.16 (or 0.16%).
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