WASHINGTON (dpa-AFX) - Crude oil edged lower on Tuesday following yesterday's sharp gains, as U.S. data showed a modest build in crude oil inventories.
The dip was limited broadly due to the dimming possibilities of a Russia-Ukraine ceasefire along with geopolitical tensions in the Middle East and South America.
WTI Crude Oil for February delivery was last seen trading down by $0.16 (or 0.28%) at $57.92 per barrel.
According to a U.S. Energy Information Administration report released late yesterday, crude oil inventories inched higher by 405,000 barrels in the week ended December 19 following two weeks of decline. Economists had expected crude oil inventories to decrease by 2.6 million barrels
For the same period, gasoline inventories climbed by 2,862,000 barrels and distillate inventories crept up by 0.202 million barrels. Heating oil inventories, however, fell by 399,000 barrels.
The Baker Hughes Company data revealed that crude oil rigs in the U.S. increased to 412 in the week ended December 30 from 409 in the previous week and total rigs increased to 546 from 545 in the previous week.
The U.S. peace proposal that U.S. President Donald Trump formulated to bring the drawn-out Russia-Ukraine war to an end took an unexpected turn today after Russia claimed that Ukraine conducted a drone strike on one of the Russian President Vladimir Putin's official residences in Novgorod, in north-western Russia. No casualties were reported, however.
Russia has announced that it would take a 'reversed stance' in the ongoing peace talks.
Ukrainian President Volodymyr Zelenskyy refuted Russia's claims, calling them 'a complete fabrication' aimed to disturb the peace talks and carry out more strikes on Ukraine.
Experts are concerned that these claims and counterclaims have derailed the progress made in the peace process so far.
In South America, accusing Venezuela of indulging in illicit drug-smuggling that spills into the U.S., Trump had earlier ordered a total 'naval blockade' to all 'sanctioned oil tankers' entering or leaving the ports of Venezuela.
Yesterday, Trump made a fresh announcement that the U.S. had attacked and destroyed a docking area for ships in Venezuela and hit all the boats over there.
As U.S. offensives move from sea to land, experts warn of further trouble if China or Russia step in to directly support Venezuela.
In the Middle East, Iran had announced an 'all-out war' on the U.S. and the West. In response, Trump had warned of dire consequences if Iran attempts to build new nuclear programs.
After negotiations with Israeli Prime Minister Benjamin Netanyahu, Trump warned the Palestinian militant group Hamas to abide by the peace accord signed months before and disarm themselves.
In the Middle East, tensions between Saudi Arabia and the United Arab Emirates are increasing.
Saudi Arabia launched airstrikes on Southern Transitional Council separatists last Friday and today bombed the port city of Mukalla in Hadramout region of Yemen, targeting a shipment of weapons to be delivered for the STC.
STC separatists were trying to capture oil-rich regions of Hadhramaut and the eastern province of al-Mahra in Yemen.
The U.S. dollar index was last seen trading at 98.19, up by 0.16 (or 0.16%) today.
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