Oil prices rise as investors assess global supply prospects

Oil drilling rigs

Oil prices rose at the close of trading today, Dec. 23, as investors assessed the outlook for global supply movements amid the possibility that the United States might sell the Venezuelan crude it seized. In addition, oil prices were also affected by concerns about the fallout from recent Ukrainian attacks on Russian ships and naval facilities.

Brent crude futures for February delivery rose 0.50%, or 31 cents, to $62.38 a barrel. WTI crude oil futures for February delivery gained 0.64%, or 37 cents, to $58.38 a barrel.

The positive performance came after Ukraine launched a drone attack on two Russian ships and naval piers on Dec. 22, prompting Moscow to retaliate by targeting the Ukrainian port of Odessa on the Black Sea.

However, analysts quoted by Reuters pointed out that the abundance of global supplies and the rise in floating oil inventories to their highest levels since 2020 are limiting any further price increases, especially given the weak liquidity in the markets during a shortened trading week.