Weekly Crude Oil Review: WTI futures hit near one-month high

WTI crude oil futures extended gains amid rising geopolitical risks and supply disruption worries. Oil prices rose after US government data showed that oil inventories shrunk, by 3.8 million barrels in the week to January 2. This marked the largest decrease since late October. WTI Crude oil hit around one-month high near $60 per barrel. Oil prices had extended losses after Washington and Caracas struck a deal to redirect Venezuelan oil ? originally destined for China ? to US refiners, a move that could soften market tightness. President Trump said the agreement, potentially worth up to $2 billion, aims to support Venezuelan production while diverting shipments from Asian buyers. Oil benchmarks have been pressured by expectations of ample global oil supply in 2026, with some forecasts pointing to continued surplus conditions. At the same time, progress toward a U.S.?Ukraine security agreement has raised the possibility of fewer restrictions on Russian crude exports, adding to the bearish sentiment.

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