WTI Holds Near $60.50 as Oversupply Fears Cap Gains

Prices Consolidate After Four-Day Rally: West Texas Intermediate (WTI) crude traded largely flat during Asian hours on Thursday, hovering around $60.50–$60.60 per barrel after posting gains for four consecutive sessions. The recent rally has stalled as concerns over ample global supply offset pockets of bullish momentum.


IEA Flags Supply-Demand Imbalance

Downside risks remain anchored in oversupply expectations. The International Energy Agency reiterated that global oil supply is set to significantly outpace demand this year, even after a modest upgrade to its demand growth outlook. Adding to the pressure, industry data showed US crude inventories rose by roughly 3 million barrels last week.


Easing Trade Tensions Support Demand Outlook


Crude prices found some support from easing geopolitical and trade-related tensions. US President Donald Trump said he would refrain from imposing tariffs on European goods tied to opposition against his bid to take control of Greenland, helping to reduce immediate downside risks to global energy demand.


Greenland Framework Adds Uncertainty


Trump also noted that the United States and NATO had “formed the framework of a future deal regarding Greenland.” However, no concrete details were provided, leaving markets uncertain about the scope or implications of any potential agreement.

Supply Disruptions Lend Short-Term Support

Oil prices were further underpinned by optimism over tighter near-term supply following temporary shutdowns at Kazakhstan’s Tengiz and Korolev oilfields. Reuters reported that Tengiz operator TCO declared force majeure on crude deliveries into the CPC pipeline system, with outages expected to last seven to ten days.


Venezuelan Exports Highlight Slow Recovery

Meanwhile, Venezuelan oil exports under a flagship $2 billion supply deal with the United States reached about 7.8 million barrels on Wednesday, based on vessel-tracking data and PDVSA documents cited by Reuters. The figures underscore the slow pace of recovery that has limited the state producer’s ability to fully reverse recent output cuts.


US Refiners Resume Venezuelan Crude Purchases

In a related development, Valero Energy purchased a cargo of Venezuelan crude, marking the first deal by a US Gulf Coast refiner under Washington’s agreement with Caracas to import up to 50 million barrels of oil. The move signals cautious re-engagement, though volumes remain limited.