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Oil prices edged higher on Monday, rebounding from recent losses as fresh geopolitical developments raised concerns over potential supply disruptions linked to Venezuela and broader global tensions.
Brent crude futures rose 57 cents, or 0.9%, to $61.04 per barrel by 07:51 GMT, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1.0%, to $57.07 per barrel.
The move followed reports that the U.S. Coast Guard had intercepted an oil tanker in international waters off the coast of Venezuela, an action that could further restrict crude flows from the OPEC producer. Officials told Reuters on Sunday that the operation would mark the second such interception over the weekend and the third in less than two weeks if completed. The White House did not immediately comment on the incident.
Market sentiment toward oil has shifted in recent days after U.S. President Donald Trump announced a “total and complete” blockade on sanctioned Venezuelan oil tankers, a move that reignited supply-side concerns. The situation was further compounded by reports of a Ukrainian drone strike on a Russian “shadow fleet” vessel in the Mediterranean Sea, adding to uncertainty around global energy shipments.
“The rebound in oil prices has been driven by a renewed focus on geopolitical risk,” said IG analyst Tony Sycamore, noting that developments surrounding Venezuela and Russia have prompted traders to reassess downside risks to supply.
Despite Monday’s gains, crude prices remain under pressure on a broader time frame. Both Brent and WTI fell around 1% last week, following steeper losses of roughly 4% in the previous week ending December 8, as concerns over global demand and slowing economic growth weighed on sentiment.
On the diplomatic front, U.S. special envoy Steve Witkoff said on Sunday that talks held over the past three days in Florida between U.S., European, and Ukrainian officials had focused on aligning positions to end the war in Ukraine. He described the discussions, along with separate talks involving Russian negotiators, as productive.
However, optimism remained limited after a senior foreign policy adviser to Russian President Vladimir Putin said that amendments made by European and Ukrainian parties to U.S. proposals had failed to improve the prospects for peace, keeping geopolitical risks elevated and energy markets on edge.
