Crude oil prices closed at their lowest level since October on Thursday, dragged down by early declines in U.S. stocks. WTI crude fell approximately 1.5%, settling below $58 per barrel, while the global benchmark Brent crude closed near $61 per barrel. Earlier geopolitical tensions that had driven prices higher were offset by disappointing corporate earnings reports.

The U.S. military intercepted and seized a sanctioned oil tanker near Venezuela’s coast, marking a significant escalation in tensions between the two countries. Venezuela denounced the action as "piracy."

A source familiar with the matter stated that Ukraine attacked Lukoil’s Filanovsky oil field, expanding its strikes on Russian energy infrastructure, even as the U.S. pressures Kyiv to accept a peace deal largely on the Kremlin’s terms. An end to the conflict could lead to increased Russian crude supply entering the market.

Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted, "The weak equity market environment and ongoing Ukraine-Russia headlines have kept sentiment subdued, while Venezuela-related news only triggered limited short-covering."

The International Energy Agency (IEA) revised down its forecast for global oil supply surpluses this year and next—the first such adjustment in months. It now expects global oil supply to exceed demand by 3.815 million barrels per day in 2026, still a record high but 231,000 barrels per day lower than last month’s projection.

January WTI crude fell 1.47% to settle at $57.60 per barrel. February Brent crude declined 1.49% to $61.28 per barrel.