Oil Prices Hold Gains as Markets Focus on Supply Fears and Economic Strength

Group 1: Oil Price Movements - Oil prices have stabilized after recent gains, with Brent crude at $62.46 and West Texas Intermediate at $58.48, both up over 4.5% in the last five trading days due to geopolitical risks [1] - Robust U.S. economic data has supported the rally, with the economy growing at its fastest pace in two years in Q3, driven by strong consumer spending and rebounding exports [2] Group 2: Supply and Inventory Dynamics - Preliminary data indicates a build in U.S. crude stocks, with a rise of about 2.4 million barrels reported by the American Petroleum Institute [3] - Venezuela's legislature has passed a law criminalizing actions against its shipping, which may impact supply dynamics amid U.S. sanctions enforcement [4] - Multiple vessels carrying Venezuelan crude are currently anchored offshore due to onshore tank storage filling up, indicating a growing export bottleneck that could tighten supply flows [5] Group 3: Geopolitical Risks - Ongoing Russian attacks on Ukraine continue to create uncertainty, with fading optimism over peace talks potentially leading to higher oil prices if Russian supply does not return to the market [6] - Despite supply risks, there are persistent concerns about excess crude inventories and a structural surplus, with long-term forecasts suggesting global oil inventories may continue to rise through 2026, potentially exerting downward pressure on prices [7]