Oil rises for sixth day, buoyed partly by US data; Brent tops USD 62.50

Oil prices on global markets are rising for a sixth day, with analysts citing US data and geopolitical tensions as the main factors. Shortly before 16:00 CET, the February Brent futures contract was up 0.3 percent at more than USD 62.50 a barrel, while the contract for US light crude West Texas Intermediate (WTI) was up nearly half a percent at more than USD 58.60.

Since a short-term low last week, when oil fell to around a five-year low, prices for both types of crude have risen by approximately six percent. However, oil prices are down the most this year since 2020, when demand was hit by the effects of the Covid-19 pandemic.

Tuesday's data showed that US gross domestic product (GDP) growth unexpectedly accelerated to an annualised 4.3 percent in the third quarter. Growth in the second quarter was 3.8 percent, and most analysts had expected the pace to slow in the third quarter.

Analysts are also monitoring the smooth flow of supplies to the market. When discussing rising oil prices, they often cite Russia and Venezuela, as both countries are subject to US sanctions. Tensions between Washington and Caracas have intensified in recent days, and the United States has already taken action against several tankers that it says are transporting Venezuelan oil in violation of sanctions.

“Over the past week, we have seen a combination of position covering amid thin trading, as last week's price slump failed to hold, and heightened geopolitical tensions, including the US blockade of Venezuela, supported by the very favourable GDP data from the previous day,” said IG analyst Tony Sycamore.

Oil prices in dollars per barrel (about 159 litres):