WTI oil continues to hold at $58 dollars as the market monitors the situation of exports from Venezuela.

Where Will Oil Prices Go with Signals from the US

The oil market is closely watching the API forecast regarding crude oil inventories each week. This Tuesday, the American Petroleum Institute (API) will release data on crude oil stocks. If inventories decrease more than expected, this signals strong demand and could push WTI prices higher. Conversely, if inventories increase more than forecasted, it indicates oversupply or weakening demand, which could put downward pressure on prices.

Venezuela Crisis Fragments Create Market Tensions

Currently, WTI is steady around $58.10 in the morning of Tuesday, according to Asian market hours. This situation arises amid investor concerns about the future of crude oil exports from Venezuela.

The US recently took action last weekend, deploying US troops into Venezuela and arresting President Nicolás Maduro and his wife, Cilia Flores, who were taken to New York. President Donald Trump announced on Saturday that Washington would govern Venezuela temporarily and leverage its massive oil reserves to offer to the international community. The White House has been in talks with several energy companies about the country’s recovery.

Uncertain Risk Levels

What matters most to the oil industry is: how much will export levels change if the US continues these actions? Analysts from Aegis Hedging say that this uncertainty is the “main issue” causing investors to closely monitor geopolitical impacts.

Signs of rising geopolitical tension and the risk that Venezuela might halt oil supplies could cause WTI prices to spike in the short term. Other news related to this situation will be carefully watched by OPEC members, who are still under US sanctions.