DTN Oil Update
WTI at $57 Amid Global Strife Ahead of New Year's Eve
SECAUCUS, N.J. (DTN) -- Oil futures ended little changed on the penultimate trading session of 2025, as traders weighed the backdrop of geopolitical developments against a slight increase in U.S. crude and fuel stockpiles last week.
Escalating strikes in Ukraine and new Saudi military action in Yemen fueled supply concerns in Tuesday's, Dec. 30, trading, even as a delayed inventory report for the week ended Dec. 19 showed a build in U.S. crude stockpiles.
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Global uncertainty surged after Russian strikes targeted Ukraine's maritime infrastructure, hitting a merchant vessel and damaging critical port facilities at Chornomorsk and Pivdennyi. The hostilities dampened hopes for an imminent end to the Russia-Ukraine war. This has maintained sanctions on Russian oil trade in a market the International Energy Agency forecasts will be oversupplied by some 3.84 million bpd in 2026.
Across the Middle East, Saudi Arabian forces conducted fresh aerial operations in Yemen to counter what they termed foreign-backed threats to their sovereign security.
Meanwhile, U.S. President Donald Trump threatened to authorize strikes on Tehran if the country resumes weapons development.
On the supply side, the Energy Information Administration reported late on Tuesday, Dec. 30, in data delayed by the Christmas break that U.S. commercial crude stocks rose by 400,000 bbl to to 424.8 million bbl during the week ended Dec. 19.
Separately, Federal Reserve officials said in minutes from its Dec. 10 meeting -- published on Tuesday -- that the central bank expects more interest rate cuts in 2026 if U.S. inflation continues to decline over time.
NYMEX WTI crude for February delivery settled down $0.13 at $57.95 bbl and Brent's front-month crude contract dipped $0.06 to $61.88 bbl.
The front-month RBOB contract edged up $0.0069 to $1.7346 gallon despite the EIA reporting a weekly distillate stocks growth of 2.9 million bbl to 118.7 million bbl.
In ULSD, the front-month futures contract climbed by $0.0230 to $2.1505 gallon after distillate inventories grew by 200,000 bbl last week to 228.5 million bbl.
The U.S. Dollar Index rose by 0.168 points to 97.9 against a basket of foreign currencies.