Crude Oil Prices Ease on Dec 23 After Strong Previous Session

Crude Oil prices softened in early Asian trade on Tuesday after gaining more than 2% in the previous session, as markets reacted to fresh geopolitical developments while remaining cautious about longer-term supply conditions. 

Brent crude slipped to around $61.96 per barrel, while U.S. West Texas Intermediate traded near $57.88. Despite the mild pullback, both benchmarks had posted their strongest daily gains in weeks, driven by fears of potential supply disruptions.

Venezuela Sanctions Add Uncertainty

A key factor influencing market sentiment was the United States’ stance on Venezuelan crude. As part of its pressure campaign on Venezuela, Washington has stepped up enforcement actions against oil shipments. 

U.S. President Donald Trump indicated that crude seized off the Venezuelan coast in recent weeks could either be sold on the market or retained, potentially to replenish U.S. strategic reserves. 

This uncertainty added complexity to supply expectations, as any sale could temporarily boost availability, while prolonged sanctions continue to restrict Venezuelan exports.

Black Sea Attacks Heighten Supply Risks

Geopolitical tensions in Eastern Europe also played a significant role. Russia and Ukraine intensified attacks on each other’s Black Sea facilities, a crucial corridor for global energy and grain exports. 

Russian strikes damaged port infrastructure and a ship in Ukraine’s Odesa region, marking the second attack in under 24 hours. Meanwhile, Ukrainian drone strikes reportedly damaged vessels and piers in Russia’s Krasnodar region, sparking fires and disrupting maritime logistics.

Ukraine has increasingly focused on targeting Russia’s maritime supply chain, particularly shadow-fleet tankers used to bypass sanctions. These attacks have raised concerns about the safety of shipping routes and the potential for further disruptions to crude flows from the region.

Market Balances Risks and Supply Outlook

Despite these risks, oil markets remain restrained by forecasts of ample supply in early 2026. Expectations of higher output from non-OPEC producers and steady global inventories are tempering bullish momentum, leaving prices sensitive to short-term geopolitical headlines rather than sustained demand growth.

Also Read: Best Energy Stocks Under ₹100 in India for December 2025!

Conclusion

Oil prices are currently caught between immediate geopolitical threats and a more comfortable medium-term supply outlook. While sanctions on Venezuela and escalating Black Sea attacks support prices, expectations of abundant supply next year are limiting upside. As a result, crude markets are likely to remain volatile, reacting sharply to any escalation that threatens prolonged supply disruptions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.