Oil prices climbed significantly on Monday, driven by mounting geopolitical risks in two major energy-producing regions. Brent crude rose by $1.38 (2.3%) to $61.85, while U.S. WTI crude increased by $1.29 (2.3%) to $57.81.
Venezuelan Blockade: The U.S. Coast Guard is actively pursuing a tanker suspected of sanctions evasion near Venezuela. This follows President Donald Trump’s recent announcement of a naval blockade targeting Venezuelan oil exports. Analysts at UBS noted that the market is now pricing in real disruption risks for Venezuelan crude, which accounts for 1% of global supply.
Russian Supply Risks: Prices were further bolstered by Ukrainian drone attacks in Russia’s Krasnodar region. The strikes damaged two vessels and two piers, sparking fires in a village on the Black Sea coast—a critical hub for Russian energy exports.
Despite recent "productive" talks in Florida involving U.S. envoy Steve Witkoff and European/Ukrainian officials, Russia’s leadership indicated that current proposals have not yet improved the prospects for peace.
Experts expect prices to consolidate this week as traders balance weak oil fundamentals against the high "geopolitical risk premium" caused by the ongoing conflicts.
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