Oil Prices Rise Amid Rising Tensions Between Washington and Caracas

New York | EcoPulse24

Oil prices rose during trading on Monday, with West Texas Intermediate (WTI) crude contracts climbing to around $56.9 per barrel, continuing the gains made at the end of last week amid escalating tensions between the United States and Venezuela and associated fears of potential supply disruptions.

Support for prices came after reports indicated that Washington is pursuing a new ship near Venezuelan waters, reflecting tightened enforcement of sanctions against Caracas. The United States had seized two oil tankers earlier this month, one at the beginning of the weekend, highlighting geopolitical risks in the Latin American region.

In a parallel development, market attention turned to Eastern Europe after a Russian oil tanker was targeted in the Mediterranean for the first time, following previous attacks on facilities belonging to Lukoil in the Caspian Sea, raising concerns about the security of energy supply routes.

These developments come as diplomatic efforts continue to end the war between Russia and Ukraine, with U.S. and Ukrainian officials describing talks held in Miami on Sunday as "positive and constructive," though no significant breakthroughs have been announced yet.

Despite the support provided by these geopolitical factors for oil prices, crude remains on track for an annual decline, amid expectations of a supply surplus in the market in the coming period, which limits the ability of prices to achieve sustainable gains in the longer term.