Stability of Oil Prices Amid Concerns Over Geopolitical Risks to Supplies

SadaNews - Oil prices stabilized in trading on Tuesday, as market participants assessed the risks posed by Ukrainian drone attacks on Russian energy sites, in addition to rising tensions between the U.S. and Venezuela.

Brent crude futures remained at $63.22 per barrel, while West Texas Intermediate crude rose by 0.1% to $59.41 per barrel.

Both benchmark crude oils had risen by more than 1% on Monday.

The Caspian Pipeline Consortium announced Monday that it had resumed oil shipments from one of its berthing points at a facility on the Black Sea, following a significant Ukrainian drone attack on November 29.

A note from analysts at "Ritterbush & Associates" stated that "military escalation reinforces our view that reaching a peace agreement remains a weak prospect in the near term, and that diesel and gas markets are poised to rise again."

Ukrainian President Volodymyr Zelensky stated on Monday that Kiev's priorities include maintaining the nation's sovereignty and obtaining strong security guarantees, emphasizing that conflicts in the region remain among the most complicated.

U.S. envoy Steve Witkoff is scheduled to brief the Kremlin on Tuesday.

ANZ Bank noted that the escalating U.S. campaign against Venezuela raises concerns about the possibility of further declines in oil exports.

A senior U.S. official stated that President Donald Trump held discussions with senior advisors to explore ways to increase pressure on Venezuela and other issues.

Trump had stated on Saturday that the airspace above Venezuela and its vicinity should be considered "fully closed," without providing further details.