Oil prices fell on Tuesday amid expectations of abundant global supply and weak demand, as markets assessed the potential for increased Venezuelan crude production following the U.S. arrest of President Nicolás Maduro.
اضافة اعلان
Brent crude futures declined 0.5% (28 cents) to $61.48 per barrel by 07:35 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 0.6% (32 cents) to $58.00 per barrel.
Brianka Sachdeva, senior market analyst at brokerage firm Philip Nova, noted that oil prices have responded only weakly to major geopolitical events, such as U.S. military moves in Venezuela and ongoing attacks on Russia’s energy infrastructure, indicating that fundamental supply and demand factors remain the main price drivers.
“From a supply perspective, the oil market remains well-stocked,” she added. “According to the latest data from the International Energy Agency and the U.S. Energy Information Administration, global crude supplies continue to outpace consumption growth, pushing inventories higher and maintaining downward pressure on prices.”
A Reuters survey conducted in December showed that market participants expect oil prices to remain under pressure throughout 2026 due to increased supply and weak demand.
Pressure on prices could intensify following Maduro’s arrest on Saturday, raising the possibility of lifting U.S. sanctions on Venezuelan oil and boosting production. Maduro appeared in a New York court on Monday, pleading not guilty to drug-related charges.
A source told Reuters that the administration of U.S. President Donald Trump plans to meet this week with executives from American oil companies to discuss ways to increase Venezuelan oil output.
Ed Mayer, a market analyst at Marex, said: “Even a partial implementation of Trump’s approach is likely to increase Venezuelan oil production, adding more pressure to a market already facing oversupply.”
Venezuela, a founding member of OPEC, holds the world’s largest proven oil reserves, estimated at 303 billion barrels, but its oil sector has declined over the years due to underinvestment and U.S. sanctions. Last year, Venezuelan production averaged around 1.1 million barrels per day.
Analysts suggest production could rise by up to 500,000 barrels per day over the next two years if political stability is achieved and U.S. investments flow in.
However, ANZ Research noted in a report that political instability remains the most likely scenario, adding that increasing production beyond Venezuela’s current effective capacity would require substantial investment.
Source: Reuters
