Oil closes lower as investors assess market prospects

Oil drilling rigs

Oil prices fell at the close of trading today, Dec. 24, as traders assessed the market outlook amid geopolitical tensions in Ukraine and Venezuela, coupled with accelerating economic growth in the United States.

Brent crude futures for February delivery fell 0.22%, or 14 cents, to $62.24 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures for February delivery edged up 3 cents to settle at $58.35 a barrel.

The global benchmark is down 16% since the start of 2025, while WTI is on track for an 18% loss, its worst annual performance since 2020 when global oil demand was severely affected by the pandemic.

The global energy market has recently faced the risk of supply disruptions, with the US increasing its military presence in the Caribbean and imposing a blockade on oil tankers to and from Venezuela.

Meanwhile, Ukraine continues to target Russia's energy and shipping infrastructure with airstrikes, even as US-brokered peace talks between the two neighbors continue.

On the demand side, US economic growth accelerated unexpectedly in the third quarter, boosting the outlook for energy consumption in the world's largest economy and simultaneously reducing the likelihood of a Federal Reserve interest rate cut in January.