WTI futures climbed noticeably after U.S. authorities launched an operation targeting tankers suspected of carrying Venezuelan crude in violation of sanctions and following renewed protests in southern Iran that threaten to disrupt exports. Traders pointed to a 1.4 million barrel draw in U.S. crude stocks reported by the American Petroleum Institute for the week ending January 5, tightening the market. Meanwhile, Saudi Arabia’s energy minister reaffirmed voluntary production cuts totaling 1.3 million barrels per day, and OPEC+ delegates indicated that current compliance with agreed quotas exceeds 110%. Market participants now assign a 65% probability to further curbs when the group meets later this month.

After the midweek rally, WTI relinquished ground as the API reported a 2.2 million barrel build in U.S. gasoline stocks, the largest weekly increase since late November. Refinery utilization ticked up 0.8 percentage points to 92.4%, underpinning higher output and pressuring crack spreads. Traders also cited forecasts from the Energy Information Administration projecting U.S. motor fuel consumption will grow by just 0.5% year-on-year this quarter, raising concerns that refinery throughput may outpace demand growth and weigh on crude processing margins.