Oil Prices Little Changed Amidst U.S.–Venezuela Tensions
Oil prices changed little on Tuesday as rising geopolitical tensions between the US and Venezuela, Ukrainian attacks on Russian energy infrastructure and OPEC+’s decision to keep output unchanged all fuelled supply concerns.
International benchmark Brent crude was trading at $63.15 per barrel, down 0.01% from the previous close of $63.16. The US benchmark West Texas Intermediate (WTI) also decreased by about 0.01% to $59.30, compared to $59.31 in the prior session.
US President Donald Trump announced on Nov. 29 that the airspace over and around Venezuela would be completely closed. Citing an executive order he signed earlier this year, Trump said the US military would take a more active role in combating Latin American drug cartels at their source.
In late August, Washington deployed a naval force — including submarines and warships — off the Venezuelan coast, and US Defense Secretary Pete Hegseth said the military was prepared to conduct operations in Venezuela, including a potential regime-change mission.
Venezuelan President Nicolas Maduro responded by mobilizing 4.5 million militia members, saying the country was ready to repel any attack.
Analysts say a full-scale conflict remains unlikely, but Washington could tighten restrictions on Venezuela, posing risks to the country’s oil production and exports.
Meanwhile, diplomatic efforts continue to end the Russia-Ukraine war, recent strikes on energy facilities are heightening supply worries in global markets.
Crude shipments via the Caspian Pipeline Consortium (CPC) were temporarily halted after a drone attack on infrastructure near the Black Sea port of Novorossiysk. Loadings have partially resumed, but the incident underscored the vulnerability of regional oil flows and added upward pressure on prices.
The CPC pipeline is the main export route carrying crude from Kazakhstan’s Tengiz and Karachaganak fields to global markets through Novorossiysk.
On the other hand eight OPEC+ members — including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — doubled down on their decision to keep their production levels unchanged for the first quarter of 2026.
Since April, these countries have been gradually unwinding voluntary cuts by returning roughly 2.9 million barrels per day to the market.
OPEC+ is currently implementing around 3.24 million barrels per day of supply curbs, equivalent to about 3% of global demand. The cuts consist of a 2 million-barrel-per-day group-wide reduction in place through the end of 2026, supplemented by voluntary cuts from the eight participating countries.
