Europe Asia News

Trump announced on the social media platform Truth Social that “all sanctioned oil tankers” entering and leaving Venezuela would be “fully and completely blockaded.”

West Texas Intermediate rose more than 1% to $55.96 per barrel. U.S. crude prices fell about 3% on Tuesday to close at their lowest level since early 2021, as an impending supply surplus and a possible peace deal in Ukraine weighed on the market.

February-dated Brent crude futures climbed 0.8% to $59.38 per barrel, while West Texas Intermediate (WTI) crude futures rose 1% to $55.75 per barrel. WTI prices had risen as much as 1.7% earlier in the session to $56.19 per barrel.

The increase came after WTI and Brent prices fell to five-year lows in the previous session amid rising concerns over a supply surplus next year.

Despite the rebound, prices remain under pressure as market participants focus on an approaching global supply surplus in 2026. Key industry forecasts point to a surplus next year due to record U.S. crude oil production, resilient flows from Russia and OPEC+ producers, and weak demand growth, particularly in China.

Meanwhile, optimism over possible progress in peace talks between Russia and Ukraine contributed to Tuesday’s decline, as traders priced in the possibility of easing sanctions that could allow Russia to ship additional oil to global markets.

ING analysts said in a note: “Venezuela exported around 600,000 barrels per day in November. Given recent developments, these figures are likely to decline. Much of this oil is shipped to China,” adding:

“As our oil balance shows, the supply surplus is expected to peak in the first quarter of 2026. However, with a surplus expected in every quarter next year, inventories will build throughout 2026, putting further pressure on oil prices.”