Published by Global Banking & Finance Review®
Posted on December 23, 2025
3 min readLast updated: January 20, 2026
Add as preferred source on GoogleOil prices rose as US economic growth exceeded expectations and supply risks from Venezuela and Russia were assessed.
By Nicole Jao
NEW YORK, Dec 23 (Reuters) - Oil prices settled higher on Tuesday as investors assessed stronger-than-expected U.S. economic growth and the risk of disruptions to oil supply from Venezuela and Russia.
Brent crude futures settled 31 cents, or 0.5%, higher to $62.38 a barrel. U.S. West Texas Intermediate crude was up 37 cents, or 0.64%, at $58.38.
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.
Other data painted a mixed picture of the economy. U.S. consumer confidence deteriorated in December amid deepening anxiety over jobs and income while factory production was unchanged in November after declining in October, data showed on Tuesday.
Investors were also considering the risk of disruptions to Venezuelan supply.
U.S. President Donald Trump earlier this month announced a blockade of all oil tankers under sanctions entering and leaving Venezuela has kept vessel owners on alert.
"With dwindling storage capacity in Venezuela, there are rising risks that the country might have to shut in some production," said UBS analyst Giovanni Staunovo.
Tanker loading in Venezuela has slowed, with most ships moving oil cargoes only between domestic ports following U.S. action against more ships.
Trump said on Monday that the U.S. might keep or sell the oil it had seized off the coast of Venezuela.
Disruption to Russian oil supply also supported prices.
Russian forces struck Ukraine's Black Sea port of Odesa late on Monday and damaged port facilities and a ship, 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.
(Reporting by Nicole Jao in New York, Seher Dareen in London, Anjana Anil in Bengaluru and Emily Chow in SingaporeEditing by David Goodman, Joe Bavier, Nia Williams and David Gregorio)
Consumer confidence is an economic indicator that measures how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economic outlook, influencing their spending behavior.
Brent crude futures are contracts that allow investors to buy or sell crude oil at a predetermined price at a future date, serving as a benchmark for oil prices globally.
The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for implementing monetary policy, regulating banks, and maintaining financial stability.
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