Venezuela supply problems drive up oil prices

YNP:

Oil prices rose on Monday as fears of a possible production disruption due to escalating tensions between Washington and Caracas overshadowed lingering supply concerns.

Brent crude futures were up 0.49% at $61.42 a barrel, as of 0725 GMT, while U.S. crude futures were also up 0.49% at $57.72 a barrel.

Both contracts fell more than 4% in the previous week, weighed down by expectations of a surplus in 2026.

“Peace talks between Russia and Ukraine have oscillated between optimism and caution, while tensions have increased between Venezuela and America, raising fears of supply disruptions,” said Tsuyoshi Ueno, chief economist at the NLA Research Institute.

He added: “In the absence of a clear vision for markets, concerns about the glut remain, and unless geopolitical risks sharply worsen, the price of Texas crude could fall below $55 early next year.”