Oil Prices Climb as US-Venezuela Tensions Escalate
Oil prices increased in the global commodity market on Monday amidst escalating tensions between the United States (U.S.) and Venezuela, raising concerns over supply.
Brent crude was trading at $61.23 per barrel, up around 0.3% from the previous close of $61.02. US benchmark West Texas Intermediate (WTI) also increased by about 0.4% to $57.54, compared to $57.33 in the prior session.
US President Donald Trump confirmed last week that his administration seized an oil tanker off the coast of Venezuela as tensions with President Nicolas Maduro continue to escalate.
“We’ve just seized a tanker on the coast of Venezuela; large tanker, very large, largest one ever seized, actually. And other things are happening,” Trump told reporters at the White House, alleging that it was taken “for a very good reason.”
The New York Times reported that the tanker seized by the US was linked to the Caracas government’s efforts to support Cuba.
A report citing internal data from Venezuela’s state oil company PDVSA said the tanker Skipper left the country on Dec. 4 carrying about 2 million barrels of crude oil, with its destination listed as the port of Matanzas in Cuba.
The report said a source close to PDVSA claimed the tanker later headed for China after transferring oil to another vessel, the Neptune 6.
Speaking on condition of anonymity, a senior Iranian Oil Ministry official claimed that the Skipper had previously been used for about four years to transport Iranian oil to Syria and China.
Investors are closely watching the developments, while reports that the US plans to stop additional ships carrying Venezuelan oil have fueled expectations of supply disruptions, pushing prices higher.
– Oversupply concerns remain in focus
As peace talks between Russia and Ukraine swing between optimism and caution, concerns about oversupply remain strong, limiting gains in oil prices.
US and Ukrainian delegations held talks in Berlin on Sunday, discussing a 20-point peace plan and economic agendas, according to a readout of the meeting.
The meeting between Ukrainian President Volodymyr Zelenskyy, US special envoy Steve Witkoff, US President Donald Trump’s son-in-law Jared Kushner and delegations from both countries lasted over five hours, said the readout shared by Witkoff on the US social media company X.
Representatives held “in-depth” discussions regarding the peace plan, economic agendas “and more,” it said.
“A lot of progress was made, and they will meet again tomorrow morning,” the statement added. Zelenskyy is also expected to meet German Chancellor Friedrich Merz and other European leaders in Berlin later Monday. Cordros Marks GTCO Top Pick, Cites Superior Earnings Quality
