Global oil prices rose approximately 2% on Monday due to the halt in Caspian Pipeline Consortium (CPC) exports following a major drone attack and escalating US-Venezuela tensions. Meanwhile, OPEC+ countries decided not to change their production levels for the first quarter of 2026.
Brent crude rose 2.02% to $63.64 as of 12:53 GMT. US West Texas Intermediate (WTI) crude oil rose 2.17% to $59.82.
Drone Attack and Geopolitical Tensions
CPC, which carries approximately 1% of the global oil supply, announced it has suspended operations after a rope system at its Russian terminal in the Black Sea was damaged by a Ukrainian drone attack. However, shareholder Chevron stated that loading continues at the Novorossiysk port.US President Donald Trump’s statement over the weekend that Venezuelan airspace should be considered “closed” created new uncertainty in the oil market. Venezuela is a major crude oil producer. Although Trump announced that he had spoken with Venezuelan leader Nicolas Maduro, he did not clarify whether his remarks regarding the airspace implied a possible military move.
OPEC+ Decision Offers Relief to Markets
OPEC+ countries reiterated their decision to halt production increases, as they did at their meeting in early November. LSEG senior analyst Anh Pham said this decision provided some relief to the markets against recent concerns about a “supply surplus.” Oil prices closed lower last Friday for the fourth consecutive month on expectations of increased global supply; this was the longest losing streak since 2023. ING analysts noted that Ukraine’s new attacks on Russian energy infrastructure and the escalation of US-Venezuela tensions increased supply risks. In Europe, however, diminished optimism regarding Russia-Ukraine peace talks reversed the downward trend of the past two weeks and strengthened expectations that markets may tighten again.
