WTI advances above $57.50 due to potential supply concerns

West Texas Intermediate (WTI) Oil price climbs to near $57.70 during the European hours on Friday. Crude Oil prices edge higher on potential supply concerns stemming from escalating geopolitical tensions.

Kyiv has stepped up strikes on Russian energy infrastructure in recent months to disrupt Moscow’s military financing. Meanwhile, Russia and Ukraine exchanged accusations over civilian attacks on New Year’s Day, despite intensive United States (US)-led talks under President Donald Trump to end the nearly four-year conflict.

The US Treasury Department on Wednesday sanctioned the Panama-flagged Nord Star, Guinea-flagged Lunar Tide, and Hong Kong-flagged Della for allegedly transporting Venezuelan crude or fuel this year to Asia and the Caribbean, aiding President Maduro’s government in evading sanctions, including four tankers linked to a so-called ‘shadow fleet,’ according to Reuters.

The measures have prevented sanctioned vessels from entering or leaving Venezuela, forcing the state Oil company PDVSA to adopt extreme steps to avoid refinery shutdowns as residual fuel inventories build up.

US Crude Oil stockpiles fell by 1.934 million barrels last week, the largest draw since mid-November and well above expectations for a 0.9 million-barrel decline, reported by the US Energy Information Administration (EIA) on Wednesday.

Traders are looking forward for virtual meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) due on Sunday, with expectations that the group will uphold its November decision to pause further production increases.