Key Moments
- Brent February futures traded at $62.44 per barrel and WTI at $58.78 per barrel, up 0.4% and 0.5% respectively as of 21:38 ET (02:38 GMT).
- U.S. commercial crude inventories fell by 1.812 million barrels, surpassing expectations for a 1.1 million barrel draw, while gasoline and distillate stocks increased.
- The Federal Reserve cut its benchmark rate by 25 basis points to a 3.5-3.75% target range, weakening the U.S. dollar and supporting commodity demand.
Supply Jitters After U.S. Seizure of Venezuelan Tanker
Oil prices advanced in Asian trade on Thursday as traders reacted to the United States’ seizure of a sanctioned crude tanker near Venezuela. The action raised fresh concerns about potential supply disruptions.
At 21:38 ET (02:38 GMT), Brent Oil Futures for February delivery were up 0.4% at $62.44 per barrel, while West Texas Intermediate (WTI) crude futures climbed 0.5% to $58.78 per barrel.
According to media accounts, authorities intercepted the vessel—identified as the Skipper—near Venezuelan waters. The coordinated action involved the U.S. Coast Guard, the FBI, and Homeland Security.
U.S. President Donald Trump on Wednesday confirmed the operation, calling the ship the “largest ever” detained under U.S. sanctions enforcement.
The incident reinforced worries about further interruptions to Venezuelan crude exports and introduced a fresh supply-risk premium into the oil market.
The US has seized a sanctioned oil tanker off the coast of Venezuela in what Washington says is part of a campaign to curb Iranian oil smuggling, marking another sharp escalation in tensions with President Nicolas Maduro’s government. pic.twitter.com/Rr65QwScw4
— The National (@TheNationalNews) December 11, 2025
Inventory Data Signal Tighter Crude Balance
Weekly data from the U.S. Energy Information Administration (EIA) showed a 1.812-million-barrel drop in commercial crude stockpiles. This was larger than the projected 1.1-million-barrel draw. Therefore, the report pointed to a slightly tighter supply balance than analysts expected.
In contrast, gasoline inventories rose during the period. This increase aligned with a seasonal slowdown in fuel demand after the autumn driving season. Distillate inventories—including diesel and heating oil—also increased.
| Category | Change | Expectation |
|---|---|---|
| Commercial crude inventories | -1.812 million barrels | -1.1 million barrels |
| Gasoline inventories | Increased | Not specified |
| Distillate inventories | Increased | Not specified |
Fed Rate Cut Supports Commodity Demand
In a parallel macro development, the Federal Reserve reduced its benchmark rate by 25 basis points on Wednesday. This marked the third cut in the current cycle and lowered the target range to 3.5–3.75%.
The decision was not unanimous, and several policymakers dissented. Even so, the move weakened the U.S. dollar and reduced financing costs. These factors generally support commodities, including crude oil.
The combination of tighter-than-expected U.S. crude inventories, renewed geopolitical supply risks linked to Venezuela and a more accommodative U.S. monetary policy stance underpinned the latest advance in oil prices.
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