Traders Rush to Lock In Oil Prices Amid Iran Geopolitical Risk, More Venezuelan Supply

Record trading volumes seen for WTI Midland at Houston and Western Canadian Select futures contracts

Published on Feb. 4, 2026

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Investors rushed to lock in oil prices at record levels in January amid concerns around Iranian crude supplies and more Venezuelan barrels heading to the U.S. Gulf Coast. Hedging can help producers reduce risk and protect their production from sharp moves in the market by locking in a price for the oil. Traders traded a record number of WTI Midland at Houston contracts and set a daily record for the benchmark on the ICE, as U.S. crude futures closed around $65 a barrel on January 30, up about 14% from the first trading day of the year.

Why it matters

Iranian geopolitical tensions have influenced risk premiums in the oil market, while severe winter weather in the U.S. hit production and refinery dynamics. The return of Venezuelan crude has also created potential new competition for Canadian oil on the U.S. Gulf Coast and in other export markets, including China.

The details

Traders moved a record 188,000 contracts for ICE Houston Western Canadian Select futures, as the WCS benchmark price recorded a single-day volume record of 19,965 lots on January 6, the day Caracas and Washington reached a deal to export up to $2 billion worth of Venezuelan crude to the United States, prompting concerns those South American barrels would displace Canadian barrels at the Gulf Coast.

  • Investors traded a record number of WTI Midland at Houston contracts, with 1.9 million contracts trading on the Intercontinental Exchange last month.
  • Traders set a daily record for WTI Midland at Houston on the ICE, trading 257,569 contracts on January 30, 2026.
  • U.S. crude futures closed at around $65 a barrel on January 30, up about 14% from the first trading day of the year.
  • The WCS benchmark price recorded a single-day volume record of 19,965 lots on January 6.

The players

Intercontinental Exchange (ICE)

A major global exchange operator that provides trading, clearing, and information services for financial and commodity markets.

Jeff Barbuto

Senior vice president of global oil markets at ICE.

Caracas

The capital city of Venezuela, where the government reached a deal to export up to $2 billion worth of Venezuelan crude to the United States.

Washington

The capital of the United States, where the government reached a deal with Venezuela to export Venezuelan crude to the U.S.

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What they’re saying

“The return of Venezuelan crude has created potential new competition for Canadian oil on the U.S. Gulf Coast and in other export markets, including China.”

— Jeff Barbuto, Senior vice president of global oil markets at ICE

The takeaway

The surge in oil price hedging and trading activity highlights the heightened volatility and geopolitical risks in the global oil market, as traders seek to lock in prices and manage exposure amid concerns over Iranian supply disruptions and the return of Venezuelan crude to the U.S. Gulf Coast.