WTI at $57 Amid Global Strife Ahead of New Year's Eve


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil futures ended little changed on the penultimate 
trading session of 2025, as traders weighed the backdrop of geopolitical 
developments against a slight increase in U.S. crude and fuel stockpiles last 
week.

   Escalating strikes in Ukraine and new Saudi military action in Yemen fueled 
supply concerns in Tuesday's (12/30) trading, even as a delayed inventory 
report for the week ended December 19 showed a build in U.S. crude stockpiles.

   Global uncertainty surged after Russian strikes targeted Ukraine's maritime 
infrastructure, hitting a merchant vessel and damaging critical port facilities 
at Chornomorsk and Pivdennyi. The hostilities dampened hopes for an imminent 
end to the Russia-Ukraine war. This has maintained sanctions on Russian oil 
trade in a market the International Energy Agency forecasts will be 
oversupplied by some 3.84 million bpd in 2026.

   Across the Middle East, Saudi Arabian forces conducted fresh aerial 
operations in Yemen to counter what they termed foreign-backed threats to their 
sovereign security.

   Meanwhile, U.S. President Donald Trump threatened to authorize strikes on 
Tehran if the country resumes weapons development.

   On the supply side, the Energy Information Administration reported late on 
Tuesday (12/29) in data delayed by the Christmas break that U.S. commercial 
crude stocks rose by 400,000 bbl to to 424.8 million bbl during the week ended 
December 19.

   Separately, Federal Reserve officials said in minutes from its December 10 
meeting - published on Tuesday - that the central bank expects more interest 
rate cuts in 2026 if U.S. inflation continues to decline over time.

   NYMEX WTI crude for February delivery settled down $0.13 at $57.95 bbl and 
Brent's front-month crude contract dipped $0.06 to $61.88 bbl.

   The front-month RBOB contract edged up $0.0069 to $1.7346 gallon despite the 
EIA reporting a weekly distillate stocks growth of 2.9 million bbl to 118.7 
million bbl.  

   In ULSD, the front-month futures contract climbed by $0.0230 to $2.1505 
gallon after distillate inventories grew by 200,000 bbl last week to 228.5 
million bbl.

   The U.S. Dollar Index rose by 0.168 points to 97.9 against a basket of 
foreign currencies.




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