WTI slips toward $58.00 as rising global inventories fuel oversupply concerns

West Texas Intermediate (WTI) Oil price loses ground after registering over 4% gains in the previous session, trading around $58.10 per barrel during the Asian hours on Friday. Oil prices depreciate amid rising global inventories and oversupply.

Oil major Chevron, global trading houses Vitol and Trafigura, and other firms are competing for United States (US) government deals to export Venezuelan crude, vying to market up to 50 million barrels of PDVSA’s accumulated inventories amid ongoing negotiations on Venezuelan Oil exports.

Crude Oil prices could further gain amid concerns about potential supply disruptions from Venezuela and Iran, as geopolitical tensions persist and markets weigh uncertainty over future flows. US President Donald Trump said the United States would react strongly to any lethal crackdown on protesters in Iran, while traders monitor developments involving US policy toward Venezuela and heightened rhetoric surrounding Greenland.

US Senator Lindsey Graham said he met President Trump at the White House on Wednesday, where Trump approved moving forward with a long-pending Russia sanctions bill. Graham said the legislation would give the President authority to penalize countries purchasing discounted Russian Oil that supports Moscow’s war effort, naming China, India, and Brazil as possible targets.

Meanwhile, US actions in Venezuela drew attention after Washington seized two Oil tankers linked to the country in the Atlantic, including one sailing under a Russian flag, underscoring intensified efforts to tighten control over energy flows and enforce sanctions, according to Reuters.