ABUJA, Dec. 22, 2025 (Naija247news) – West Texas Intermediate (WTI) US crude oil prices struggled to extend gains during Asian trading on Tuesday, moving sideways just below the $58.00 per barrel mark after touching a more than one-week high in the previous session.
Market sentiment remains delicately balanced as escalating geopolitical risks continue to support prices, even as traders hesitate to push the rally further. Rising tensions between the United States and Venezuela, alongside reports of Ukrainian drone attacks on two Russian vessels at a Black Sea port, have revived concerns about potential supply disruptions, providing a near-term tailwind for crude prices.
On the demand side, signs of resilience in global consumption are offering additional support. Strong crude import levels from India and China, the world’s top growth drivers for oil demand, suggest consumption remains firmer than earlier feared. This dynamic reinforces expectations that dip-buying interest could emerge at lower price levels, limiting downside pressure in the near term.
Meanwhile, the US dollar weakened to a one-week low, further underpinning oil prices. The greenback came under pressure following comments by US Treasury Secretary Scott Bessent, who raised questions about the future credibility and communication framework of the US Federal Reserve. Bessent floated the possibility that a new Fed chair could scrap the closely watched dot plot and review the central bank’s inflation framework, injecting longer-term uncertainty into US monetary policy.
A softer dollar typically benefits dollar-denominated commodities, including crude oil, making them cheaper for holders of other currencies.
Given these cross-currents, analysts caution that it may be premature to conclude that WTI’s recent rebound — from its lowest level since April, touched last week — has lost momentum. A sustained bout of strong selling would be needed to confirm a deeper corrective move.
Looking ahead, investor attention is turning to key US macroeconomic data, including the preliminary Q3 GDP report and Durable Goods Orders. The releases are expected to offer fresh insight into the health of the world’s largest economy and could provide the next directional catalyst for crude oil prices.
Sub Zero ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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