Crude Oil Rebounds Amid Geopolitical Tensions, Still Faces Worst Year Since 2020

• Crude oil prices rebound from early-2021 lows, despite being on track for their worst annual performance since 2020.
• The rebound is fueled by renewed geopolitical tensions, including US actions against Venezuelan oil and Ukraine's strikes on Russian infrastructure.
• US seized Venezuelan oil tankers, threatening further disruption to Maduro government's revenue and global supply.
• Ukraine targeted Russia's Volna terminal in Krasnodar region and "shadow fleet" tankers, impacting supply and peace talks.
• Thinning trading volumes during Christmas holidays and short-covering by Commodity Trading Advisors also contributed to the price rise.

Why It Matters: Geopolitical tensions and holiday trading dynamics are driving a crude oil rebound, but prices remain set for a challenging year.