Crude Oil Holds Gains Amid Venezuela Tensions and Black Sea Terminal Damage

Crude oil prices held firm as markets monitored geopolitical developments and supply disruptions. West Texas Intermediate (WTI) remained steady above $59 a barrel after a 1.3% rise in the previous session.

Brent crude closed near $63, supported by heightened tensions in Venezuela and damage to a key export terminal in the Black Sea. These factors injected a risk premium into prices despite ongoing concerns about global oversupply.

US Pressure on Venezuela

US President Donald Trump convened a meeting on Venezuela as American forces mass near the region. The administration has intensified its rhetoric against Nicolas Maduro’s government, signalling potential escalation.

Market participants are watching closely for any sanctions or military action that could disrupt oil flows. Such developments have historically influenced global crude benchmarks.

Black Sea Export Disruption

Ukraine has continued strikes on Russian energy infrastructure, extending geopolitical risks to the Black Sea. A recent attack targeted a mooring at the Caspian Pipeline Consortium terminal, the largest outlet for Kazakh crude exports.

This facility plays a critical role in regional supply chains, and any prolonged disruption could tighten global markets. The incident underscores vulnerabilities in energy transport routes amid ongoing conflict.

Price Movements and Market Sentiment

WTI futures held above $59 per barrel, while Brent settled near $63, reflecting resilience despite surplus concerns. The recent gains follow a 1.3% advance in WTI during the previous session.

Traders are factoring in geopolitical risk premiums, which partially offset bearish signals from swelling inventories. Market sentiment remains cautious as supply risks compete with demand uncertainty.

Geopolitical Risk Premium

The combination of US-Venezuela tensions and Black Sea disruptions has added a layer of volatility to oil markets. Analysts note that geopolitical factors often overshadow fundamentals in the short term.

While surplus concerns persist, the potential for sudden supply shocks keeps prices supported. Investors are bracing for further developments that could reshape near-term price dynamics.

Read More: Russian Oil Supply to India to Drop Sharply.

Conclusion

Crude oil prices remain buoyant as geopolitical risks dominate market narratives. US actions on Venezuela and damage to a key Black Sea terminal have injected uncertainty into global supply chains.

These developments have helped offset bearish sentiment from rising inventories. Market participants continue to monitor the situation closely for signs of escalation or resolution.

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