Global Oil Prices Remain Strong, What's Happening in Venezuela and the Black Sea?
Global oil prices remain strong as market participants await US President Donald Trump's next move on Venezuela. West Texas Intermediate (WTI) held steady above $59 per barrel after previously rising 1.3%, while Brent hovered near $63 per barrel. Market sensitivity grew after Trump held a meeting on Venezuela on Monday night, as US troops reportedly massed in the region and pressure on Nicolas Maduro's government intensified.
This escalating situation has made the market cautious and added a risk premium to oil prices. These geopolitical concerns partly overshadow other concerns about the potential for a growing supply surplus in the global market. In other words, while abundant supply can depress prices, political tensions are actually preventing oil prices from falling too far.
At the same time, geopolitical risks do not only come from Venezuela. Threats also extend to Russia and the Black Sea region, where Ukraine continues to carry out attacks on Russian energy facilities. One such incident involved an attack on a mooring at the Caspian Pipeline Consortium (CPC) terminal in the Black Sea, which is Kazakhstan's largest crude oil export route. The CPC stated that "further operations are impossible" at the mooring, adding to market concerns about disruptions to oil supplies from the region. (az)
Source: Newsmaker.id
