Oil Futures Rise on Early U.S. Trading Momentum

Oil futures posted gains in early U.S. trading on January 5, 2026, as market participants responded to tightening supply outlooks and escalating geopolitical risks. Brent crude futures rose 1.2% to settle at $86.42 per barrel, while WTI futures advanced 1.1% to $82.91, marking the first positive movement in three consecutive sessions. The price uptick followed reports of reduced output from OPEC+ members and unexpected maintenance activities in offshore Gulf of Mexico fields, which collectively tightened near-term supply availability. The rally was further supported by ongoing concerns over Middle East stability, with recent clashes in the Red Sea disrupting maritime shipping lanes and increasing insurance premiums for tankers. Additionally, U.S. Energy Information Administration data released earlier in the week showed a smaller-than-expected draw in crude inventories, with a decline of 1.2 million barrels compared to analysts’ forecast of a 2.5 million-barrel draw. This reinforced the perception of tighter supply fundamentals in the short term. Market analysts noted that while demand growth remains uneven across regions, particularly in Europe and China, the current supply constraints are outweighing demand uncertainty. The volatility is expected to persist into the next trading session, with options positioning suggesting increased hedging activity ahead of upcoming OPEC+ meeting scheduled for January 10, 2026.