WTI Oil Edges Higher as Venezuela Blockade Clashes with Oversupply Narrative

Geopolitical Risk vs Fundamental Surplus

The U.S. naval blockade intended to pressure the Maduro administration is forcing state energy company PDVSA to resort to extreme solutions to avoid total refining shutdowns. While this tightens near-term supply, the IEA warns that global production—led by a record 13.87 million bpd from the U.S.—is still on track to outpace demand this year.

Technical Support Zone

Technically, WTI is skewed toward the $55 to $65 range for the first quarter. Traders are looking toward next week's OPEC+ virtual meeting, where the group is widely expected to maintain production pauses to prevent a further price collapse in an oversupplied international market.