Oil Prices Edge Higher as Venezuela Tensions Offset Oversupply Concerns

PUKMEDIA

Oil prices.

Oil prices rose on Monday as supply disruptions stemming from heightened U.S.–Venezuela tensions outweighed concerns over a growing global surplus and the potential impact of a Russia–Ukraine peace deal.

According to Reuters, Brent crude futures climbed 33 cents, or 0.54%, to $61.45 a barrel as of 04:29 GMT, while U.S. West Texas Intermediate (WTI) crude gained 31 cents, also 0.54%, to $57.75 a barrel.

The gains come after both benchmarks fell more than 4% last week amid expectations of a surplus in 2026.

Venezuela’s oil exports have dropped sharply following the U.S. seizure of a tanker and the imposition of new sanctions targeting shipping companies and vessels working with the country, according to shipping data and industry sources.

Meanwhile, Ukraine said on Friday that its forces struck the Yaroslavl oil refinery northeast of Moscow, prompting the suspension of operations, according to industry sources.

Russian oil and gas revenues are also under pressure. December income is expected to fall nearly 50% year-on-year to 410 billion roubles ($5.12 billion), driven by lower crude prices and a stronger rouble, according to Reuters calculations.

A potential peace agreement between Russia and Ukraine could eventually lift Western sanctions and bring additional Russian crude back onto the market.




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