Oil steady on US data, geopolitical tension

Oil prices were little changed on Wednesday, as investors weighed U.S. economic growth and assessed the risk of supply disruptions from Venezuela and Russia, though prices were on course for their steepest annual decline since 2020.

Brent crude futures were down 23 cents, or 0.4%, at $62.15 a barrel at 11:40 a.m. EST (1640 GMT), while U.S. West Texas Intermediate crude eased 8 cents, or 0.2%, to $58.29.

Oil prices were little changed on Wednesday, as investors weighed U.S. economic growth and assessed the risk of supply disruptions from Venezuela and Russia, though prices were on course for their steepest annual decline since 2020.

Both contracts have gained about 6% since December 16, when they plunged to near five-year lows.

"What we've seen over the past week is a combination of position-squaring in thin markets, after last week's breakdown failed to gain traction, coupled with heightened geopolitical tensions, including the U.S. blockade on Venezuela and supported by last night's robust GDP data," IG analyst Tony Sycamore said.

U.S. data showed the world's largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.

Still, Brent and WTI prices are on track to drop about 16% and 18%, respectively, this year - their steepest declines since 2020 when the COVID-19 pandemic hit oil demand - as supply is expected to outpace demand next year.