According to sources, oil prices showed a downward trend on Wednesday after four consecutive days of gains. Venezuela has resumed crude oil exports; however, concerns over potential supply disruptions due to political instability in Iran are weighing on the market.
Brent futures were trading at around $65.38 per barrel, down 9 cents, while US West Texas Intermediate (WTI) was at $61.03 per barrel, down 12 cents.
On the previous day, Brent and WTI prices had risen by 2.5% and 2.8% respectively, driven by fears of possible supply disruptions caused by escalating protests in Iran. On the other hand, Venezuela has begun reversing the decline in oil production following US sanctions, and crude oil exports have been restored. Sources said that tankers departed Venezuela carrying approximately 1.8 million barrels per tanker, likely representing the first shipments under a 50-million-barrel supply deal between Caracas and Washington.
US oil inventories have also increased, indicating a relatively soft global supply-demand balance. Last week, US crude oil inventories rose by 5.23 million barrels, while gasoline and distillate inventories also recorded increases. In light of these factors, downward pressure on global oil prices remained limited.
