By Yongchang Chin and Alex Longley

(Bloomberg) -- Oil retreated to the lowest since October, tracking wider losses in equities and other risk assets.

Global benchmark Brent fell back below $62 a barrel, reversing an earlier advance of as much as 0.7%. Pressure from disappointing earnings offset the rising risk of escalating tensions between Washington and Caracas.

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US forces intercepted and seized a sanctioned tanker — a very large crude carrier — in a move the Venezuelan government called an “act of piracy.” The OPEC member holds the world’s largest oil reserves and exported around 586,000 barrels a day last month, which mostly went to China.

The increased tensions come against a bearish backdrop for crude, as more production from OPEC+ and the Americas is set to overwhelm tepid demand growth and lead to a glut. The International Energy Agency offered some respite from the gloom on Thursday, trimming its estimate of a record glut for the first time since May, though it still sees a major oversupply.

“All in all, for 2026, stockbuilds should be higher than in 2025, though strong China buying and continued geopolitical risks keep the ex-China surplus more modest, helping to replenish still-low inventories,” Citigroup Inc. analysts including Eric Lee wrote.

Meanwhile, Ukraine attacked a shadow-fleet tanker linked to Russia’s oil trade, even as the US pushes for a ceasefire between the two sides. The latest incident means that since the end of last month there have been at least five attacks on vessels that had ties to Russia.

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