Oil prices settled higher on Tuesday as investors assessed stronger-than-expected US economic growth and the risk of disruptions to oil supply from Venezuela and Russia.
Brent crude futures settled 31 cents, or 0.5 per cent, higher at $62.38 a barrel. US West Texas Intermediate crude was up 37 cents, or 0.64 per cent, at $58.38.
Prices had risen by more than 2 per cent on Monday, with Brent registering its biggest daily gain in two months and WTI climbing the most since November 14.
The US economy grew faster than expected, driven by robust consumer spending, the Commerce Department’s Bureau of Economic Analysis said in its initial estimate of third-quarter GDP on Tuesday.
“The market is trying to decide whether we should be more excited about the demand coming from the strong growth or worried that the Fed is going to have to put on the brakes on that growth to get inflation under control,” said Phil Flynn, senior analyst with the Price Futures Group.
Other data painted a mixed picture of the economy. US consumer confidence deteriorated in December amid deepening anxiety over jobs and income while factory production was unchanged in November after declining in October, data showed on Tuesday.
Trump’s venezuela blockade
Investors were also considering the risk of disruptions to Venezuelan supply.
US President Donald Trump earlier this month announced a blockade of all oil tankers under sanctions entering and leaving Venezuela, which has kept vessel owners on alert.
Panama-flagged very large crude carrier Kelly, which had departed from Venezuela carrying oil last week, has returned to Venezuelan waters following the US interception of more tankers, monitoring service TankerTrackers.com said on Tuesday.
“With dwindling storage capacity in Venezuela, there are rising risks that the country might have to shut in some production,” said UBS analyst Giovanni Staunovo.
Tanker loading in Venezuela has slowed, with most ships moving oil cargoes only between domestic ports following US action against more ships.
Trump said on Monday that the US might keep or sell the oil it had seized off the coast of Venezuela.
Russian supply disrupted
Disruption to Russian oil supply also supported prices.
Russian forces struck Ukraine’s Black Sea port of Odesa late on Monday and damaged port facilities and a ship, the second attack on the region in less than 24 hours, while Ukrainian drone attacks damaged two vessels, two piers and sparked a fire in a village in Russia’s Krasnodar region.
Ukraine has also targeted Russia’s maritime logistics, focusing on shadow-fleet oil tankers that attempt to bypass sanctions on Russia.
Oil markets are expected to remain well supplied in the first half of 2026, Barclays said in a note this week, but the bank added the oil surplus would shrink to only 700,000 barrels per day in the fourth quarter of 2026 and prolonged disruption could tighten the market further.
US crude inventories rose by 2.39 million barrels last week, while gasoline stocks increased by 1.09 million barrels and distillate inventories rose by 685,000 barrels, market sources said, citing American Petroleum Institute figures on Tuesday.
The US Energy Information Administration is due to release its data on Monday, later than usual due to the holidays.
