Oil prices climbed in early Monday trade following the U.S. interception of an oil tanker off Venezuela coast in international waters. Brent crude futures rose 44 cents, or 0.73%, to $60.91 per barrel, while U.S. West Texas Intermediate (WTI) crude increased 40 cents, or 0.71%, to $56.92. The U.S. Coast Guard is also pursuing another Venezuelan tanker, potentially marking the second such operation over the weekend and the third in less than two weeks.
Read More: Oil price rise on US sanctions, Venezuela tanker risks
The recent rise in crude prices has been driven by geopolitical developments, starting with President Donald Trump’s announcement of a “total and complete” blockade on sanctioned Venezuelan tankers.
Analysts say this comes alongside a Ukrainian drone strike on a Russian shadow fleet vessel in the Mediterranean, creating uncertainty in global oil markets. IG analyst Tony Sycamore said these factors are helping to offset oversupply concerns, shifting the balance of risks toward rising crude prices.
Last week, Brent and WTI fell around 1% after declining roughly 4% during the week of December 8. Traders had been cautious amid ongoing concerns over oversupply, but geopolitical tensions appear to have reignited bullish sentiment.
Meanwhile, diplomatic efforts to end the Russia-Ukraine war continue, though without immediate results for oil market stability. U.S. special envoy Steve Witkoff said talks in Florida over the past three days focused on aligning positions between U.S., European, and Ukrainian officials, with some engagement with Russian negotiators. However, a top Russian foreign policy aide noted that recent European and Ukrainian changes to U.S. proposals did not improve prospects for a peace agreement, keeping uncertainty high in global energy markets