Oil stable amid geopolitical developments

Oil drilling rigs

Oil prices closed flat today, Dec. 30, as markets assessed the likelihood of a peace agreement between Russia and Ukraine, as well as escalating geopolitical tensions in the Middle East and the Caribbean.

Brent crude futures for February delivery (expired today) remained unchanged at $61.92 a barrel, after rising more than 2% on Dec. 29.

WTI crude oil futures for February delivery fell by 0.22%, or 13 cents, to $57.95 a barrel.

This comes despite fading hopes for a peace agreement between Russia and Ukraine after Moscow accused Kyiv of attempting to target the residence of President Vladimir Putin.

These developments prompted Russia to announce a change in its negotiating position during the US-sponsored peace talks.

On another front, the US on Dec. 29 launched an attack on an area in Venezuela that includes a seaport, which it said is used to load boats with drugs.

This is the first military strike carried out by Washington inside Venezuelan territory since the start of its latest campaign to pressure President Nicolas Maduro, which prompted Caracas to begin shutting down oil wells due to the disruption of exports as a result of the US naval blockade.

Separately, data released by Baker Hughes showed an increase in oil drilling rigs in the US during the week ended Dec. 30, suggesting an increase in US crude oil supplies.