Oil markets appeared to be treading water on Thursday, with prices showing little movement as conflicting global factors weighed on investor sentiment. A barrel of North Sea Brent crude for February delivery slipped marginally, shedding 17 cents from the previous day’s close to settle at $62.21. Meanwhile, the price for the US benchmark, West Texas Intermediate (WTI), remained flat, holding steady at $58.38.
Market analysts indicated that the ongoing geopolitical friction between the United States and Venezuela is currently underpinning prices, preventing a more significant slide. However, this geopolitical support is being largely offset by persistent anxieties regarding a potential glut in the market. Traders remain cautious, caught between the supply risks posed by the diplomatic row and the dampening effect of broader oversupply fears.
A sharp decline from yearly highs
Taking a longer view, the current valuation of crude represents a marked retreat from the levels seen earlier in the year. Values have cooled significantly since the start of 2025. For context, WTI had surged to a yearly high of $82.63 in mid-January, a figure that now seems distant. The primary driver behind this downward trajectory has been the recurring expectation of an excess of crude oil, which has repeatedly put a damper on rally attempts throughout the year and kept a lid on any sustained price recovery.
European energy equities outperform
In contrast to the lethargy seen in the raw commodity markets, energy sector equities displayed a somewhat more positive tone on the trading floor. The iShares STOXX Europe 600 Oil & Gas ETF demonstrated resilience, pushing upwards during the session. After opening the day in Stuttgart at €40.38, the fund managed to climb, marking a daily high of €40.54.
Activity was steady, with 4,046 shares changing hands during the Stuttgart session. The fund eventually secured a gain of 0.20 per cent, rising by €0.08. This uptick continues a generally robust period for the ETF, which is trading relatively close to its recent peak; the fund reached its 52-week high only last month, on 17 November 2025. While oil prices struggle for direction, investors appear to be finding slightly more confidence in the broader energy infrastructure and production companies represented by the index.