WTI holds steady near $58.00 amid uncertainty over Venezuela's oil flow changes
WTI price flat lines near $58.10 in Tuesday’s early Asian session.
Traders will assess the potential impact on crude oil flows from Venezuela.
The API crude oil stockpiles report is due later on Tuesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $58.10 during the early Asian trading hours on Tuesday. The WTI price holds steady as traders assess the possible impact on crude flows from Venezuela following the US capture of Venezuelan President Nicolas Maduro.
Over the weekend, the US military entered Venezuela, capturing and bringing Venezuelan President Nicolas Maduro and his wife, Cilia Flores, to New York. US President Donald Trump said on Saturday that Washington would run Venezuela at least temporarily and tap its vast oil reserves to sell to other nations. The Trump administration has spoken to multiple oil companies about rebuilding Venezuela, according to Taylor Rogers, a White House spokeswoman.
Traders continue to digest news of Maduro's capture and that the US would take control of the OPEC member whose crude exports had been under a US sanction that remains in effect. "The unknown for the oil market is how oil flows from Venezuela will change due to U.S. actions," said Aegis Hedging analysts.
The developments surrounding Venezuela's oil flow changes will be closely watched. Any signs of heightened geopolitical tensions and disruption risks linked to Venezuela could boost the WTI price in the near term.
The release of the American Petroleum Institute (API) crude oil stockpiles report will be the highlight later on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might drag the WTI price lower.
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