Dec 2, 2025
Oil prices remain stable amid concerns over geopolitical risks to supply.
Oil prices remained stable on Tuesday as traders considered the implications of Ukrainian drone strikes on Russian energy facilities, increasing tensions between the U.S. and Venezuela, and varied predictions regarding U.S. fuel inventories.
Brent crude futures climbed by 7 cents, or 0.1%, to reach $63.24 a barrel by 0657 GMT. Meanwhile, U.S. West Texas Intermediate crude increased by 13 cents, or 0.2%, standing at $59.45 a barrel.
Both benchmarks rose by over 1% on Monday, with WTI approaching a two-week peak.
"Oil maintained its gains as traders anticipated President Trump's actions concerning Venezuela and evaluated damage to Black Sea terminals," analysts at Saxo noted.
On Monday, the Caspian Pipeline Consortium announced that it had resumed oil shipments from one mooring point at its Black Sea terminal following significant Ukrainian drone attacks on November 29. Russian newspaper Kommersant reported that oil loadings had restarted via single point mooring 1 (SPM 1), while SPM 2 incurred damages.
"The military actions reinforce our belief that a peace agreement is unlikely in the near future and that the diesel/gasoil markets are poised to push the complex upwards," analysts at Ritterbusch and Associates stated.
In terms of negotiations, Ukrainian President Volodymyr Zelenskiy emphasized on Monday that Kyiv's main goals were to maintain sovereignty and secure strong security assurances, noting that territorial disputes are the most challenging issue.
U.S. envoy Steve Witkoff is scheduled to update the Kremlin on Tuesday.
Suvro Sarkar, the DBS energy sector team lead, indicated that "the only other emerging factor" for oil was "the situation surrounding Venezuela."
"While a full-scale conflict seems improbable, ongoing developments could destabilize the country internally and jeopardize oil production and exports," he mentioned.
U.S. President Donald Trump consulted with his senior advisers about the pressure campaign on Venezuela, according to a senior U.S. official. Trump stated on Saturday that the airspace above and around Venezuela should be considered "closed in its entirety," without elaborating further.
On Sunday, OPEC+ confirmed a minor increase in oil output for December and decided to pause further increases in the first quarter of the next year due to growing concerns about a supply surplus.
"The language from OPEC+ regarding supply management and discipline in the short term continues to support oil prices," remarked Sarkar from DBS Bank.
Mixed expectations about U.S. crude and refined product inventory data slightly influenced prices, with a preliminary Reuters poll of four analysts indicating a decline in crude inventories but an increase in product inventories for the week of November 28.
Brent crude futures climbed by 7 cents, or 0.1%, to reach $63.24 a barrel by 0657 GMT. Meanwhile, U.S. West Texas Intermediate crude increased by 13 cents, or 0.2%, standing at $59.45 a barrel.
Both benchmarks rose by over 1% on Monday, with WTI approaching a two-week peak.
"Oil maintained its gains as traders anticipated President Trump's actions concerning Venezuela and evaluated damage to Black Sea terminals," analysts at Saxo noted.
On Monday, the Caspian Pipeline Consortium announced that it had resumed oil shipments from one mooring point at its Black Sea terminal following significant Ukrainian drone attacks on November 29. Russian newspaper Kommersant reported that oil loadings had restarted via single point mooring 1 (SPM 1), while SPM 2 incurred damages.
"The military actions reinforce our belief that a peace agreement is unlikely in the near future and that the diesel/gasoil markets are poised to push the complex upwards," analysts at Ritterbusch and Associates stated.
In terms of negotiations, Ukrainian President Volodymyr Zelenskiy emphasized on Monday that Kyiv's main goals were to maintain sovereignty and secure strong security assurances, noting that territorial disputes are the most challenging issue.
U.S. envoy Steve Witkoff is scheduled to update the Kremlin on Tuesday.
Suvro Sarkar, the DBS energy sector team lead, indicated that "the only other emerging factor" for oil was "the situation surrounding Venezuela."
"While a full-scale conflict seems improbable, ongoing developments could destabilize the country internally and jeopardize oil production and exports," he mentioned.
U.S. President Donald Trump consulted with his senior advisers about the pressure campaign on Venezuela, according to a senior U.S. official. Trump stated on Saturday that the airspace above and around Venezuela should be considered "closed in its entirety," without elaborating further.
On Sunday, OPEC+ confirmed a minor increase in oil output for December and decided to pause further increases in the first quarter of the next year due to growing concerns about a supply surplus.
"The language from OPEC+ regarding supply management and discipline in the short term continues to support oil prices," remarked Sarkar from DBS Bank.
Mixed expectations about U.S. crude and refined product inventory data slightly influenced prices, with a preliminary Reuters poll of four analysts indicating a decline in crude inventories but an increase in product inventories for the week of November 28.