Oil prices have climbed to their highest level in two weeks, supported by signs of robust US economic growth and renewed concerns over potential supply disruptions linked to Venezuela and Russia.
Brent crude rose 0.5% in early trading to $62.72 a barrel, its strongest level since December 10. The move follows continued US efforts to block sanctioned oil tankers entering and leaving Venezuela, stoking fears of tighter global supply.
Prices have also been underpinned by fresh data showing the US economy expanded faster than expected in the July–September period, a signal that energy demand from the world’s largest consumer could remain resilient.
IG analyst Tony Sycamore said; What we’ve seen over the past week is a combination of position squaring in thin markets, after last week’s breakdown failed to gain traction, coupled with heightened geopolitical tensions, including the US blockade on Venezuela and supported by last night’s robust GDP data.”
Oil prices have now rebounded by around 6% since December 16, when they slumped to near five-year lows, as improving demand signals and renewed geopolitical risks have helped steady the market.
