Oil prices posted modest rises on Wednesday, extending gains from the previous session, supported by robust U.S. economic growth and the risk of supply disruptions from Venezuela and Russia.
Brent crude futures climbed 4 cents, or 0.06%, to $62.42 a barrel by 0117 GMT, while U.S. West Texas Intermediate crude added 3 cents, or 0.05%, to $58.41.
Oil had risen by more than 2% on Monday, with Brent registering its biggest daily gain in two months and WTI climbing the most since November 14. Prices notched further gains of more than 0.5% on Tuesday.
The U.S. 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.
Gross domestic product increased at a 4.3% annualized rate last quarter, the fastest pace since the third quarter of 2023, it said.
“Overnight gains were supported by last night’s robust U.S. Q3 GDP print against a backdrop of escalating geopolitical tensions,” IG analyst Tony Sycamore said in a note.
Disruptions to Venezuelan exports have been the most significant factor supporting market sentiment, while Russia and Ukraine’s continued attacks on each other’s energy infrastructure also provided support for prices, Haitong Futures said in a report.
Oil inventory data in the world’s biggest consumer was overlooked by the market due to the prominence of other factors, said analysts.
U.S. 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 U.S. Energy Information Administration is due to release its data on Monday, later than usual due to the holidays.
Due to the holiday impact in December, refined oil demand experienced a temporary peak, resulting in a limited market reaction to this inventory build, Haitong Futures said in the report.
U.S. President Donald Trump announced earlier this month 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 departed Venezuela carrying oil last week, has returned to Venezuelan waters following U.S. interceptions of more tankers, monitoring service TankerTrackers.com said on Tuesday.
More than a dozen loaded vessels are in Venezuela waiting for new directions from their owners after the U.S. seized the supertanker Skipper earlier this month and targeted two additional vessels on the weekend.
(Reporting by Sam Li in Beijing and Siyi Liu in Singapore; Editing by Muralikumar Anantharaman)