Oil prices were rising as supply disruptions related to escalating tensions between the US and Venezuela outweighed fears of oversupply and the impact of a possible peace deal between russia and Ukraine.
It was reported by Ekonomichna Pravda with reference to Reuters.
The report says that Brent futures were up 33 cents, or 0.54%, to USD 61.45 per barrel, while US WTI crude was up 31 cents, or 0.54%, to USD 57.75 per barrel. Both contracts fell by more than 4% last week amid expectations of a market surplus in 2026.
"Peace talks between Russia and Ukraine have swung between optimism and caution, while tensions between Venezuela and the U.S. are escalating, raising concerns about potential supply disruptions," said Tsuyoshi Ueno, a senior economist at NLI Research Institute.
"However, there is no clear direction in the market: surplus fears remain strong, and if geopolitical risks do not sharply escalate, WTI could fall below USD 55 early next year," he added.
According to the newspaper, Venezuela's oil exports have plummeted since the US seized a tanker last week and imposed new sanctions on shipping companies and vessels doing business with the Latin American oil producer, according to shipping data, documents and maritime sources.
It is noted that the United States plans to intercept even more ships carrying Venezuelan oil, increasing pressure on President Nicolás Maduro.
Despite the rise in prices, expectations of a surplus continue to weigh on the market.
JPMorgan Commodities Research said in a note on Saturday that oil surpluses in 2025 are expected to grow further in 2026 and 2027 as global oil supply is projected to exceed demand, growing three times faster than demand growth through 2026.
Ukrainian President Volodymyr Zelenskyy offered to abandon his country's quest to join the NATO military alliance during five hours of talks with US envoys in Berlin on Sunday.
The talks are to continue on Monday.
As the Ukrainian News agency earlier reported, oil prices on Monday, December 1, rose after the Caspian Pipeline Consortium inrRussia's largest port of Novorossiysk halted exports due to a major Ukrainian drone attack, and tensions between the US and Venezuela heightened supply concerns.
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