Oil prices remained stable on Tuesday after rising over 2% in the previous session, as the US considers selling seized Venezuelan crude. This development comes amid the US pressure campaign on Venezuela, which includes a blockade of oil tankers under sanctions. According to President Donald Trump, the US may keep or sell the oil it has seized off the coast of Venezuela in recent weeks.
On the global oil market, Brent crude futures decreased by 6 cents to $62.01 per barrel, while US West Texas Intermediate (WTI) crude slipped 9 cents to $57.92. The previous day, Brent crude posted its best daily performance in two months, and WTI climbed the most since November 14. The attacks by Ukraine on Russian vessels and piers have also heightened fears of supply disruptions, contributing to market caution.
Analysts at Barclays note that even if Venezuelan oil exports were to fall to zero in the near term, oil markets will likely still be well supplied in the first half of 2026. However, the global oil surplus is expected to shrink to 700,000 barrels per day in the fourth quarter of 2026, making the market potentially sensitive to prolonged disruptions.
In related news, Russia and Ukraine have been engaging in attacks on each other’s facilities on the Black Sea, a vital export route for both countries. Russian forces struck Ukraine’s Black Sea port of Odesa, damaging port facilities and a ship, while Ukraine targeted Russia’s maritime logistics, focusing on shadow-fleet oil tankers attempting to bypass sanctions.
The conflict between Russia and Ukraine, combined with the US consideration of selling seized Venezuelan crude, has created a complex and dynamic oil market landscape. As the situation continues to unfold, market players will be closely watching the impact on global oil supplies and prices. The potential for supply disruptions and shifting market dynamics underscores the need for ongoing monitoring and analysis of the oil market.
