Oil prices experienced a slight increase on the inaugural trading day of 2026, following a significant annual decline in the previous year, the largest since 2020. This uptick comes as Ukrainian drones have targeted Russian oil facilities, coupled with a U.S. blockade that has impacted Venezuela’s exports. Brent crude futures increased by 14 cents on Friday, reaching $60.99 a barrel by 0146, while U.S. West Texas Intermediate crude also rose by 14 cents, settling at $57.56 a barrel.
On New Year’s Day, Russia and Ukraine exchanged accusations regarding assaults on civilians, even as intensive negotiations facilitated by U.S. President Donald Trump continue in an effort to resolve the nearly four-year conflict.
Kyiv has escalated its attacks on Russian energy infrastructure in recent months, with the objective of severing Moscow’s financial resources for its military operations in Ukraine.
In a recent move by President Trump’s administration aimed at intensifying pressure on Venezuelan President Nicolas Maduro, Washington imposed sanctions on four companies and their associated oil tankers, which it claims were active in Venezuela’s oil sector. The U.S. blockade seeks to prevent sanctioned tankers from accessing Venezuelan ports, compelling the state energy company PDVSA to implement drastic measures to prevent the shutdown of refining units as residual fuel inventories accumulate.
The Brent and WTI benchmarks experienced annual declines of approximately 20% in 2025, marking the most significant drop since 2020, as apprehensions regarding oversupply and tariffs overshadowed geopolitical risks. Brent experienced its third consecutive year of losses, marking the longest streak of this nature on record. In the United States, oil production reached a historic peak of 13.87 million barrels per day in October, as reported by the Energy Information Administration on Wednesday. Crude stocks experienced a decline, whereas gasoline and distillate inventories saw an increase in the previous week, attributed to strong refining activity, according to the report.