West Texas Intermediate (WTI), the US crude oil benchmark, is trading near $60.70 during Asian hours on Wednesday, extending its decline below the $61.00 level. Prices are under pressure as Venezuela resumes crude exports and fresh data from the American Petroleum Institute (API) points to a sharp rise in US oil stockpiles. Market participants are now awaiting the Energy Information Administration (EIA) inventory report due later on Wednesday.
According to a Reuters report published Tuesday, Venezuela has started rolling back oil production cuts imposed during the US embargo, with exports gradually restarting. Sources indicated that two supertankers departed Venezuelan waters on Monday, each carrying roughly 1.8 million barrels of crude. These shipments are believed to mark the first deliveries under a proposed 50-million-barrel supply agreement between Caracas and Washington, aimed at reviving exports following renewed US engagement with Venezuelan President Nicolás Maduro.
Meanwhile, US crude inventories recorded a significant build. The API’s weekly report showed that crude stockpiles rose by 5.27 million barrels for the week ending January 9, reversing the previous week’s 2.8 million-barrel decline. Market expectations had pointed to a drawdown of around 2.0 million barrels, adding to the bearish pressure on prices.
Despite the near-term weakness, geopolitical risks may offer some support to WTI. Escalating tensions in Iran, a major oil producer, remain in focus after US President Donald Trump canceled meetings with Iranian officials and publicly backed protesters. Reports suggest Iranian security forces have used lethal force to suppress widespread demonstrations, raising concerns over potential supply disruptions should the situation deteriorate further.
