Oil prices experienced a decline in early trading on Tuesday, following a more than 2% increase in the prior session. This shift comes as the U.S. indicated the possibility of selling Venezuelan crude that it has confiscated, amidst escalating concerns over supply disruptions due to Ukraine’s assaults on Russian vessels and piers. Brent crude futures experienced a decline of 11 cents, equivalent to 0.18%, settling at $61.96 per barrel as of 0100. U.S. West Texas Intermediate crude experienced a decline of 13 cents, representing a decrease of 0.22%, settling at $57.88. Both benchmarks concluded the previous session with gains exceeding 2%, as Brent recorded its strongest daily performance in two months, while WTI experienced its most significant increase since November 14.
In his pressure campaign on Venezuela, which includes a “blockade” on oil tankers under sanctions entering and leaving the country, U.S. President Donald Trump on Monday indicated that the U.S. might retain or sell the oil it had seized off the coast of Venezuela in recent weeks. “Perhaps we will divest, perhaps we will retain it,” Trump stated, noting that it could also serve to replenish the strategic reserves of the United States. He also stated that it would be prudent for Venezuelan President Nicolas Maduro to relinquish power. “It is true that even if Venezuelan oil exports were to fall to zero over the near term, oil markets will likely still be well supplied in the first half of 2026,” Barclays stated in a note dated Monday.
Barclays projects that the global oil surplus will diminish to merely 700,000 barrels per day by the fourth quarter of 2026. Furthermore, any extended disruption could exacerbate market conditions, leading to a reduction in the recent inventory accumulations. Meanwhile, Russia and Ukraine engaged in hostilities targeting each other’s facilities in the Black Sea, a crucial export corridor for both nations. Russian forces targeted Ukraine’s Black Sea port of Odesa late on Monday, resulting in damage to port facilities and a ship. This marks the second attack on the region within a span of less than 24 hours.
On Monday, regional authorities reported that a Ukrainian drone strike resulted in damage to two vessels and two piers, in addition to igniting a fire in a village located in Russia’s Krasnodar region. Ukraine has strategically aimed at disrupting Russia’s maritime logistics, concentrating on shadow-fleet oil tankers that seek to circumvent sanctions imposed on Russia due to the ongoing conflict that has persisted for nearly four years. The market exhibits a cautious stance as traders evaluate geopolitical risks in relation to projections of sufficient supply in early 2026, rendering prices potentially vulnerable to any extended disruptions.