Oil prices remained stable in early trading on Tuesday, as market participants assessed risks associated with drone strikes on Russian energy facilities, escalating tensions between the US and Venezuela, and mixed expectations for US fuel inventories, UNN reports, citing Reuters.
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Brent crude futures rose 7 cents, or 0.1%, to $63.24 a barrel at 04:27 GMT (06:27 Kyiv time). US West Texas Intermediate crude rose 10 cents, or 0.2%, to $59.42 a barrel.
On Monday, both benchmarks rose more than 1%, with WTI crude approaching a two-week high.
Oil maintained its gains as traders awaited President Trump's actions on Venezuela and assessed the damage to Black Sea terminals
On Monday, the Caspian Pipeline Consortium announced the resumption of oil shipments from one of its Black Sea terminal berths after a drone attack on November 29.
"The military actions once again confirm our view that a peace agreement is highly unlikely in the near future, and that the diesel and gasoil markets are on the verge of a complex restart," Ritterbusch and Associates analysts said in an analytical note.
Regarding negotiations, Ukrainian President Volodymyr Zelenskyy said on Monday that Ukraine's priorities are maintaining sovereignty and ensuring reliable security guarantees, adding that territorial disputes remain the most difficult stumbling block.
US diplomatic relations specialist Steve Witkoff is scheduled to brief the Kremlin on Tuesday.
Kremlin confirms Putin's meeting with Trump's envoy Witkoff on Tuesday01.12.25, 12:18 • [views_4265]
DBS energy sector head Suvro Sarkar said the "only other new factor" for the oil market was "the noise around Venezuela."
"While a full-scale conflict is unlikely, current events could destabilize the domestic situation and jeopardize oil production and exports," he said.
US President Donald Trump discussed a pressure campaign on Venezuela with his top advisers, a senior official said. On Saturday, Trump said the airspace over and around Venezuela should be considered "completely closed," without elaborating.
On Sunday, OPEC+ confirmed a small increase in oil production in December and a suspension of its build-up in the first quarter of next year amid growing concerns about oversupply.
"OPEC+'s rhetoric on supply management and discipline in the near term continues to support oil prices," said Sarkar of DBS Bank.
Mixed forecasts for US oil and product inventory data put slight pressure on prices: a preliminary Reuters poll of four analysts showed crude inventories fell and product inventories rose in the week of November 28.