[MARKET ANALYSIS] Crude benchmarks reverse earlier losses and extend on Monday's gains despite a lack of clear driver

• Crude benchmarks started the APAC session on the backfoot, paring back some of Monday's gains before extending higher as the European session gets underway, despite a lack of crude-specific drivers.
• WTI and Brent pulled back to a low of USD 57.85/bbl and USD 61.31/bbl respectively after peaking at USD 58.51/bbl and USD 61.89/bbl in Monday's session. Benchmarks then bid higher pretty aggressively despite a clear explanation for the move, reaching a session high of USD 58.67/bbl and USD 62.14/bbl before pulling back slightly.
• Geopolitics remain in focus following the US strike in Venezuela. US President Trump has hinted that many more strikes are possible in countries like Cuba, Colombia and Mexico.

Crude benchmarks are exhibiting resilience, reversing earlier losses and building on previous gains despite the lack of a specific catalyst. This movement suggests that traders may be responding to broader geopolitical tensions, particularly in light of U.S. military actions in Venezuela and potential threats to neighboring countries. The upward momentum in crude could signal a market reassessing supply risks, warranting close attention from traders regarding potential volatility and implications for energy prices moving forward.