WASHINGTON (dpa-AFX) - Crude oil declined on Wednesday, extending yesterday's losses amid slim holiday season trading with investors refraining from big moves along with an increase in the value of the U.S. dollar.
In addition, traders parsed various inventory data releases from yesterday and today.
WTI Crude Oil for February delivery was last seen trading down by $0.48 (or 0.83%) at $57.47 per barrel.
The holiday season, which began last week, is set to end soon and hence traders backed away from risky bets.
As broadly expected, the minutes of the December meeting of the U.S. Federal Reserve released yesterday showed divisions among policymakers on future rate cuts.
Today, the U.S. dollar index was last seen trading at 98.33, up by 0.10 (or 0.10%) today.
Today, data provided by the U.S. Energy Information Administration revealed that for the week ending December 26, crude oil inventories in the U.S. fell by 1.934 million barrels, well-above market expectations of a 0.9 million-barrel fall.
The commercial crude inventory stood at 423 million barrels.
For the same period, gasoline inventories climbed by 5,845,000 barrels, distillate inventories rose by 4.977 million barrels, and heating oil inventories rose by 134,000 barrels.
Meanwhile, data from the American Petroleum Institute revealed that for the week ending December 26, crude oil inventories in the U.S. increased by 1.7 million barrels.
U.S. President Donald Trump's peace plan to end the Russia-Ukraine war has shown positive signals.
Despite territorial concessions being a core of dispute in the revised 20-point proposal, Russia stated that the negotiations are nearing the final stage, although Trump said 'one or two thorny issues' remain.
Expressing distrust with Russia, Ukrainian President Volodymyr Zelenskyy suggested that Trump should visit Ukraine to assess the situation. Zelenskyy is set to discuss the peace deal with his European allies on January 6 before signing.
The U.S-Venezuela conflict has moved to a new phase.
The CIA confirmed conducting a drone strike on December 24 on the coastal port of Venezuela. So far, the U.S. had been engaged in sea-borne offensives against the Latin American nation.
With this attack, the U.S. offensives have migrated inside Venezuelan territory.
Russia or China, political allies of Venezuela, have not stepped into the scenario though concerns remain they may do so.
In the Middle East, the conflict between Saudi Arabia and the United Arab Emirates over Yemen took a dramatic turn after the Saudi-led coalition launched an airstrike in southern Yemen's port of Mukalla on, what it called, an unauthorized shipment linked to UAE carrying weapons for STC separatists.
Following these strikes, UAE agreed to pull out its forces out of Yemen.
Eager to push the Gaza Peace Accord to the next phase, Trump wants Palestinian militant group Hamas to disarm completely as committed by them in phase one of the plan. Trump warned them of dire consequences if they fail to do so.
With Iran's president calling for an 'all-out war' against the U.S., Israel, and the West as their sanctions on Iranian oil has been draining Iran's finances, Trump warned Iran not to renew its nuclear program.
With sarcasm, Trump stated that the U.S. does not want to 'waste a B-2.'
The OPEC+ alliance has paused its output hike target for early 2026.
Experts have been warning of oversupply in the next year and consequential reduction in prices.
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