Oil steadies as market weighs Venezuela supply risks, strong US economic growth

NEW YORK: Oil prices were little changed on Tuesday as potential sales of Venezuelan crude seized by the United States weighed and investors assessed stronger-than-expected U.S. economic data.

Brent crude futures fell 8 cents to $61.99 a barrel by 11:15 a.m. ET (1615 GMT). U.S. West Texas Intermediate (WTI) crude was down 2 cents at $57.99.

Prices had risen by more than 2% on Monday, with Brent registering its biggest daily gain in two months and WTI climbing the most since November 14.

The U.S. economy grew faster than expected, driven by robust consumer spending, the Commerce Department’s Bureau of Economic Analysis said in its initial estimate of third-quarter GDP on Tuesday.

“The market is trying to decide whether we should be more excited about the demand coming from the strong growth or worried that the Fed is going to have to put on the brakes on that growth to get inflation under control,” said Phil Flynn, senior analyst with the Price Futures Group.

Investors were also considering the risk of disruptions to Venezuela supply.

U.S. President Donald Trump said on Monday that the U.S. might keep or sell the oil it had seized off the coast of Venezuela in recent weeks as part of measures that include a “blockade” of oil tankers under sanctions entering and leaving the South American country.

Tanker loading in Venezuela dwindled on Monday, with most ships moving oil cargoes only between domestic ports following U.S. action against more ships.

“The market appears to be wrestling between the oversupplied bearish factors and the latest supply concerns from the U.S. blockade reducing Venezuelan loadings and exports, as well as Russia and Ukraine trading blows to vessels and ports late on Monday,” said Rystad analyst Janiv Shah.

Russian forces struck Ukraine’s Black Sea port of Odesa late on Monday and damaged port facilities and a ship, in the second attack on the region in less than 24 hours while Ukrainian drone attacks damaged two vessels, two piers and sparked a fire in a village in Russia’s Krasnodar region.

Ukraine has also targeted Russia’s maritime logistics, focusing on shadow-fleet oil tankers that attempt to bypass sanctions on Russia.

Oil markets are expected to remain well supplied in the first half of 2026, Barclays said in a note this week, but the bank added that the oil surplus will shrink to only 700,000 barrels per day in the fourth quarter of 2026 and that prolonged disruption could tighten the market further.