Weakness continued in the energy market this week as crude oil futures fell to an eight-month low. February WTI crude oil traded sharply lower this week, touching below $55 a barrel on Tuesday, the first time since May. Spot January futures fell to the lowest since February 2021 on Tuesday.

Weak price action has been the latest sign of crude oil supplies outpacing demand. Demand growth has been slowing, according to U.S. and international agencies.

Futures had recovered slightly on Wednesday as bargain buyers stepped in. Additionally, geopolitical factors could be supporting prices today. The U.S. is also reportedly weighing new sanctions on Russia after the country rejected a peace deal with Ukraine.

President Donald Trump ordered a total blockade of sanctioned tankers entering and leaving Venezuela, which could cause supply disruptions. The move marks a significant escalation in tensions with the South American country, according to analysts.

The Energy Information Administration’s latest petroleum report showed that U.S. crude oil and fuel exports were a record last week. However, record production has kept demand from drawing inventories too much.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.